The following discussion should be read in conjunction with our consolidated
financial statements and notes thereto under "Item 15. Exhibits and financial
statement schedules" in this annual report on Form 10-K. Forward-looking
statements involve inherent risks and uncertainties regarding events,
conditions, and financial trends that may affect our future plans of operations,
business strategy, results of operations, and financial position. A number of
important factors could cause actual results to differ materially from those
included within or contemplated by such forward-looking statements, including,
but not limited to, those described within this "Item 7. Management's discussion
and analysis of financial condition and results of operations" in this annual
report on Form 10-K. We do not undertake any responsibility to update any of
these factors or to announce publicly any revisions to any of the
forward-looking statements contained in this or any other document, whether as a
result of new information, future events, or otherwise.

As used in this annual report on Form 10-K, references to the “Company,”
“Alexandria,” “ARE,” “we,” “us,” and “our” refer to Alexandria Real Estate
Equities, Inc. and its consolidated subsidiaries.

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Sources: Bloomberg and S&P Global Market Intelligence. Assumes reinvestment of
dividends.
(1)Alexandria's IPO priced at $20.00 per share on May 27, 1997.
(2)Represents the FTSE Nareit Equity Office Index.
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                    [[Image Removed: are-20221231_g42.jpg]]
As of December 31, 2022.
(1)Quarter annualized. Refer to "Net debt and preferred stock to Adjusted
EBITDA" in the "Non-GAAP measures and definitions" section within this Item 7
for additional details.
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                    [[Image Removed: are-20221231_g43.jpg]]
As of December 31, 2022.
(1)Represents the percentage of our annual rental revenue generated by our top
20 tenants that are also investment-grade or publicly traded large cap tenants.
Refer to "Annual rental revenue" and "Investment-grade or publicly traded large
cap tenants" in the "Non-GAAP measures and definitions" section within this Item
7 for additional details.
(2)Represents annual rental revenue currently generated from space that is
targeted for a future change in use, including 1.1% of total annual rental
revenue that is generated from covered land play projects. The weighted-average
remaining term of these leases is 5.2 years.
(3)Our other tenants, which aggregate 2.0% of our annual rental revenue,
comprise technology, professional services, finance, telecommunications, and
construction/real estate companies and less than 1.0% of retail-related tenants
by annual rental revenue.
(4)Represents annual rental revenue in effect as of December 31, 2022. Refer to
"Annual rental revenue" in the "Non-GAAP measures and definitions" section
within this Item 7 for additional details.
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(1)Based on the closing price of common stock as of December 31, 2022 of $145.67
and the common stock dividend declared for the three months ended December 31,
2022 of $1.21 annualized.
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(1)Includes initial proceeds from our joint venture partners' contribution
toward construction projects.
(2)Represents the aggregate gain and consideration in excess of book value
recognized on dispositions and partial interest sales, respectively.
(3)Represents the weighted-average capitalization rates for stabilized operating
assets.
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                    [[Image Removed: are-20221231_g50.jpg]]
Refer to "Net operating income" in the "Non-GAAP measures and definitions"
section within this Item 7 for additional details and its reconciliation from
the most directly comparable financial measures presented in accordance with
GAAP.
(1)As of December 31, 2022. Represents projects under construction aggregating
5.6 million RSF and seven near-term projects aggregating 2.0 million RSF
expected to commence construction during the next four quarters.
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(1)A credit rating is not a recommendation to buy, sell, or hold securities and
may be subject to revision or withdrawal at any time. Top 10% ranking represents
credit rating levels from Moody's Investors Service and S&P Global Ratings for
publicly traded U.S. REITs, from Bloomberg Professional Services as of December
31, 2022.
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                    [[Image Removed: are-20221231_g52.jpg]]
As of December 31, 2022.
(1)Quarter annualized. Refer to "Net debt and preferred stock to Adjusted
EBITDA" in the "Non-GAAP measures and definitions" section within this Item 7
for additional details.
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Executive summary

Operating results
                                                                         Year Ended December 31,
                                                                        2022                    2021
Net income attributable to Alexandria's common
stockholders - diluted:
In millions                                                     $       513.3              $     563.4
Per share                                                       $        3.18              $      3.82
Funds from operations attributable to Alexandria's common stockholders - diluted, as
adjusted:
In millions                                                     $     1,361.7              $   1,144.9
Per share                                                       $        8.42              $      7.76



The operating results shown above include certain items related to
corporate-level investing and financing decisions. For additional information,
refer to "Funds from operations and funds from operations, as adjusted,
attributable to Alexandria Real Estate Equities, Inc.'s common stockholders" in
the "Non-GAAP measures and definitions" section and to the tabular presentation
of these items in the "Results of operations" section within this Item 7 in this
annual report on Form 10-K.

An operationally excellent, industry-leading REIT with a high-quality client
base of approximately 1,000 tenants supporting high-quality revenues, cash
flows, and strong margins

Percentage of total annual rental revenue in effect from investment-grade
or publicly traded large cap tenants

                                                          48  %

Sustained strength in tenant collections:
Tenant receivables as of December 31, 2022                                             $        7.6 million

January 2023 tenant rent and receivables collected as of the date of this
report

                                                                                      99.4  %

Occupancy of operating properties in North America                                          94.8  %
Operating margin                                                                              70  % (1)
Adjusted EBITDA margin                                                                        69  % (1)
Weighted-average remaining lease term:
All tenants                                                                                     7.1 years
Top 20 tenants                                                                                  9.4 years

(1)For the three months ended December 31, 2022.

Second-highest annual leasing volume and rental rate increases (cash basis)

•Annual leasing volume of 8.4 million RSF in 2022 represents the second highest
in Company history, with 74% generated from our client base of approximately
1,000 tenants.
•Rental rate increase (cash basis) of 22.1% on lease renewals and re-leasing of
space represents the second highest rental rate growth (cash basis) in Company
history.
                                                                2022
Total leasing activity - RSF                                 8,405,587

Leasing of development and redevelopment space – RSF 2,828,539
Lease renewals and re-leasing of space:
RSF (included in total leasing activity above)

               4,540,325
Rental rate increases                                              31.0%
Rental rate increases (cash basis)                                 22.1%




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Continued strong net operating income and internal growth, including highest
annual same property growth in Company history

•Total revenues of $2.6 billion, up 22.5%, for the year ended December 31, 2022,
compared to $2.1 billion for the year ended December 31, 2021.
•Net operating income (cash basis) of $1.6 billion for the year ended
December 31, 2022, increased by $292.8 million, or 22.2%, compared to the year
ended December 31, 2021.
•96% of our leases contain contractual annual rent escalations approximating 3%.
•Same property net operating income growth of 6.6% and 9.6% (cash basis) for the
year ended December 31, 2022, compared to the year ended December 31, 2021, with
both increases representing the highest growth in Company history.
•Our 2022 same property growth outperformed our 10-year averages of 3.6% and
6.7% (cash basis) as a result of an increase in same property occupancy of 100
bps and early lease renewals that commenced in late 2021/early 2022.

Continued strong, consistent, and increasing dividends with a focus on retaining
significant net cash flows from operating activities after dividends for
reinvestment

•Common stock dividend declared for the three months ended December 31, 2022 was
$1.21 per common share, aggregating $4.72 per common share for the year ended
December 31, 2022, up 24 cents, or 5%, over the year ended December 31, 2021.
•Dividend yield of 3.3% as of December 31, 2022.
•Dividend payout ratio of 58% for the three months ended December 31, 2022.
•Average annual dividend per-share growth of 6.5% over the last five years.

Alexandria’s value-creation pipeline drives visibility for future growth
aggregating over $655 million of incremental net operating income

•Highly leased value-creation pipeline of current and seven near-term projects
expected to generate greater than $655 million of incremental net operating
income, primarily commencing from the first quarter of 2023 through the fourth
quarter of 2025.
•7.6 million RSF of value-creation projects, which are 72% leased.
•77% of the leased RSF of our value-creation projects was generated from our
client base of approximately 1,000 tenants.

External growth and investments in real estate

Delivery and commencement of value-creation projects

•During the three months ended December 31, 2022, we placed into service
development and redevelopment projects aggregating 497,755 RSF across multiple
submarkets, resulting in $28 million of incremental annual net operating income.
•Annual net operating income (cash basis) is expected to increase by $57 million
upon the burn-off of initial free rent from recently delivered projects.
•Commenced two development projects aggregating 467,567 RSF during the three
months ended December 31, 2022, including 212,796 RSF at 1450 Owens Street in
our Mission Bay submarket, which will be 100% funded by our joint venture
partner, and 254,771 RSF at 10075 Barnes Canyon Road in our Sorrento Mesa
submarket, which will be 50% funded by our joint venture partner.

Value-creation pipeline of new Class A development and redevelopment
projects as a percentage of gross assets

                                                  December 31, 2022
Under construction projects 68% leased/negotiating                                               10%

Near-term projects expected to commence construction in the next four

                       2%
quarters 88% leased
Income-producing/potential cash flows/covered land play(1)                                        7%
Land                                                                                              3%


(1)Includes projects that have existing buildings that are generating or can
generate operating cash flows. Also includes development rights associated with
existing operating campuses. These projects aggregate 1.1% of total annual
rental revenue as of December 31, 2022 and are included in targeted for a future
change in use in our industry mix chart. Refer to "High-quality and diverse
client base in AAA locations" under Item 2 in this annual report on Form 10-K.

•81% of construction costs related to active development and redevelopment
projects aggregating 5.6 million RSF are under a guaranteed maximum price
("GMP") contract or other fixed contracts. Our budgets also include construction
cost contingencies in GMP contracts plus additional landlord contingencies that
generally range from 3% to 5%.

Alexandria is at the vanguard of innovation for a high-quality client base of
approximately 1,000 tenants, focused on accommodating their current needs and
providing them with a path for future growth

•During the year ended December 31, 2022, we completed acquisitions in our key
life science cluster submarkets aggregating 10.2 million SF, which comprise
9.5 million RSF of value-creation opportunities and 0.7 million RSF of operating
space, for an aggregate purchase price of $2.8 billion.
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Execution of capital strategy

2022 capital strategy

During 2022, we continued to execute on many of the long-term components of our
capital strategy, as described below.

Maintained access to diverse sources of capital strategically important to our
long-term capital structure

•Generated significant net cash flows from operating activities
•In 2022, we funded approximately $460 million of our equity capital needs with
net cash flows from operating activities after dividends.

•Continued strategic value harvesting through real estate dispositions and
partial interest sales
•In 2022, these sales generated $2.2 billion of capital for investment into our
highly leased development and redevelopment projects and strategic acquisitions.
In connection with these transactions, we recorded gains or consideration in
excess of book value aggregating $1.2 billion.

•Achieved significant growth in annualized Adjusted EBITDA of $215.7 million, or
13%, for the year ended December 31, 2022 compared to the year ended December
31, 2021, which allowed us to:
•Improve our net debt and preferred stock to Adjusted EBITDA ratio to 5.1x,
representing the lowest ratio in Company history, for the three months ended
December 31, 2022 annualized, and fund $1.2 billion of growth on a
leverage-neutral basis; and
•Take advantage of favorable capital market environment and opportunistically
issue, on a leverage-neutral basis, unsecured senior notes payable aggregating
$1.8 billion with a weighted-average interest rate of 3.28% and an initial
weighted-average term of 22.0 years.

•Continued disciplined management of common equity issuances to support growth
in FFO per share, as adjusted, and NAV per share
•In 2022, the aforementioned internally generated capital enabled us to meet our
capital requirements while prudently limiting the amount of equity issuances to
12.9 million shares of common stock sold under our forward equity sales
agreements and ATM common stock offering program for net proceeds of $2.5
billion.

Maintained a strong and flexible balance sheet with lowest leverage in Company
history as of December 31, 2022

•Investment-grade credit ratings ranked in the top 10% among all publicly traded
U.S. REITs.
•Net debt and preferred stock to Adjusted EBITDA of 5.1x, the lowest ratio in
Company history, and fixed-charge coverage ratio of 5.0x for the three months
ended December 31, 2022 annualized.
•Total debt and preferred stock to gross assets of 25%.
•99.4% of our debt has a fixed rate.
•13.2 years weighted-average remaining term of debt.
•No debt maturities prior to 2025.
•No remaining LIBOR-based debt ahead of June 2023 phase-out.
•$5.3 billion of liquidity.
•$24.9 billion in total equity capitalization, which ranks in the top 10% among
all publicly traded U.S. REITs.
•$1.4 billion of contractual construction funding commitments from existing real
estate joint venture partners expected over the next four years.

Completion of unsecured senior line of credit amendment to upsize and extend
term

•In 2022, we amended our unsecured senior line of credit with the following key
changes:

                                                 New Agreement              

Change

Commitments available for borrowing                 $4.0 billion             Up $1.0 billion
Maturity date                                       January 2028           Extended by 2 years
Interest rate                                       SOFR+0.875%             Converted to SOFR
                                                                               from LIBOR


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2023 capital strategy

During 2023, we intend to continue to execute our capital strategy to achieve
further improvements to our credit profile, which will allow us to further
improve our cost of capital and continue our disciplined approach to capital
allocation. Consistent with 2022, our capital strategy for 2023 includes the
following elements:

•Allocate capital to Class A properties located in life science, agtech, and
tech campuses in AAA urban innovation clusters.
•Maintain prudent access to diverse sources of capital, which include net cash
flows from operating activities after dividends, incremental leverage-neutral
debt supported by growth in Adjusted EBITDA, strategic value harvesting and
asset recycling through real estate disposition and partial interest sales,
non-real estate investment sales, sales of equity, and other capital.
•Continue to improve our credit profile.
•Maintain commitment to long-term capital to fund growth.
•Prudently ladder debt maturities and manage short-term variable-rate debt.
•Prudently manage equity investments to support corporate-level investment
strategies.
•Maintain a stable and flexible balance sheet with significant liquidity.

The anticipated delivery of significant incremental EBITDA from our development
and redevelopment of new Class A properties is expected to enable us to continue
to debt fund a significant portion of our development and redevelopment projects
on a leverage-neutral basis. We expect to continue to maintain access to diverse
sources of capital, including unsecured senior notes payable and secured
construction loans for our development and redevelopment projects from time to
time. We expect to continue to maintain a significant proportion of our net
operating income on an unencumbered basis to allow for future flexibility for
accessing both unsecured and secured debt markets, although we expect
traditional secured mortgage notes payable will remain a small component of our
capital structure. We intend to supplement our remaining capital needs with net
cash flows from operating activities after dividends and proceeds from real
estate asset sales, non-real estate investment sales, partial interest sales,
and equity capital. For further information, refer to "Projected results,
Sources of capital," and "Uses of capital" within this Item 7. Our ability to
meet our 2023 capital strategy objectives and expectations will depend in part
on capital market conditions, real estate market conditions, and other factors
beyond our control. Accordingly, there can be no assurance that we will be able
to achieve these objectives and expectations. Refer to our discussion of
"Forward-looking statements" under Part I and "Item 1A. Risk factors" in this
annual report on Form 10-K.
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Operating summary

                                            Historical Same Property
                                         Net Operating Income Growth(1)                                                                                              Favorable Lease Structure(3)
                                                                                                                            Strategic Lease Structure by Owner and Operator of Collaborative Life Science, Agtech, and Technology Campuses
                                                                                                                         Increasing cash flows
                                                                                                                         Percentage of leases containing annual rent escalations                                                           96%
         [[Image Removed: are-20221231_g54.jpg]]                                                                         Stable cash flows
                                                                  [[Image Removed: are-20221231_g55.jpg]]                Percentage of triple                                                                                              93%
                                                                                                                         net leases
                                                                                                                         Lower capex burden
                                                                                                                         Percentage of leases providing for the recapture of capital expenditures                                          93%


                                         Historical Rental Rate Growth:
                                            Renewed/Re-Leased Space                                                                                                           Margins(4)

                                                                                                                                         Operating                                                                   Adjusted EBITDA
         [[Image Removed: are-20221231_g56.jpg]]                  [[Image Removed: are-20221231_g57.jpg]]                                   70%                                                                            69%




                                          Net Debt and Preferred Stock
                                             to Adjusted EBITDA(5)                                                                                                      Fixed-Charge Coverage Ratio(5)


                                    [[Image Removed: are-20221231_g58.jpg]]                                                                                        [[Image Removed: are-20221231_g59.jpg]]




(1)Refer to "Same properties" and "Non-GAAP measures and definitions" within
this Item 7 for additional details. "Non-GAAP measures and definitions" contains
the definition of "Net operating income" and its reconciliation from the most
directly comparable financial measures presented in accordance with GAAP.
(2)Our 2022 same property growth outperformed our 10-year averages of 3.6% and
6.7% (cash basis) as a result of an increase in same property occupancy of 100
bps and early lease renewals that commenced in late 2021/early 2022.
(3)Percentages calculated based on annual rental revenue in effect as of
December 31, 2022.
(4)Represents percentages for the three months ended December 31, 2022.
(5)Quarter annualized. Refer to the definitions of "Net debt and preferred stock
to Adjusted EBITDA" and "Fixed-charge coverage ratio" in the "Non-GAAP measures
and definitions" section within this Item 7 for additional details.
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Industry and ESG leadership: catalyzing and leading the way for positive change
to benefit human health and society

•In January 2022, Alexandria Venture Investments, our strategic venture capital
platform, was recognized by Silicon Valley Bank in its "Healthcare Investments
and Exits: Annual Report 2021" as the #1 most active corporate investor in
biopharma by new deal volume (2020-2021) for the fifth consecutive year. In
March 2022, Alexandria Venture Investments was also recognized by AgFunder in
its "2022 AgriFoodTech Investment Report" as one of the five most active U.S.
Investors in agrifoodtech by number of companies in which it invested (2021) for
the second consecutive year.
•Several of Alexandria's facilities and campuses across our regions received
awards in honor of excellence in operations, development, and design:
•200 Technology Square on our Alexandria Technology Square® mega campus in our
Cambridge/Inner Suburbs submarket earned a 2022 BOMA Mid-Atlantic TOBY (The
Outstanding Building of the Year) award in the Corporate Category. The TOBY
Awards honor and recognize quality in building operations and award excellence
in building management.
•Our Alexandria Center® for AgTech campus in our Research Triangle submarket was
named Top Flex/Warehouse Development in the Triangle Business Journal's 2022
SPACE Awards. The annual SPACE Awards recognize the Research Triangle's top real
estate developments and transactions.
•685 Gateway Boulevard, an amenities building on our Alexandria Technology
Center® - Gateway mega campus in our South San Francisco submarket, which is on
track to achieve Zero Energy Certification, was awarded one of 10 national
awards issued by WoodWorks - Wood Products Council in the 2022 Wood Design
Awards, an annual awards program that celebrates excellence in wood building
design.
•In February 2022, Alexandria earned the first-ever Fitwel Life Science
certification for 300 Technology Square, located on our Alexandria Technology
Square® mega campus in our Cambridge/Inner Suburbs submarket. The new rigorous,
evidence-based Fitwel Life Science Scorecard - developed in partnership with the
Center for Active Design exclusively for Alexandria - is the first healthy
building framework dedicated to laboratory facilities, marking another
pioneering effort by the Company to prioritize tenant health and wellness and
further differentiate our world-class laboratory buildings.
•In February 2022, Alexandria was ranked the #5 most sustainable REIT, as
featured in the Barron's article, "10 Real Estate Companies That Are Both
Greener and More Profitable."
•In March 2022, Alexandria's executive chairman and founder, Joel S. Marcus, was
honored by the National Medal of Honor Museum Foundation in Arlington, Texas
during a groundbreaking ceremony in celebration of the historic mission-critical
milestone in the development of the national museum. Mr. Marcus, who serves on
the foundation's board of directors, attended alongside fellow foundation board
members, major museum donors, government officials, and 15 Medal of Honor
recipients to commemorate the foundation's remarkable progress toward its goal
to build a permanent home where the inspiring stories of our country's Medal of
Honor recipients will be brought to life.
•In April 2022, 9880 Campus Point Drive, a 98,000 RSF development on the Campus
Point by Alexandria mega campus in our University Town Center submarket, earned
LEED Platinum certification, the highest level of certification under the U.S.
Green Building Council's Core & Shell rating system. Home to Alexandria
GradLabs®, a dynamic proprietary platform purpose-built to accelerate the growth
of promising post-seed-stage life science companies, the cutting-edge facility
demonstrates high levels of sustainability, including decreased water
consumption, significantly reduced energy use, and increased use of recycled
resources and materials.
•In June 2022, we released our 2021 ESG Report, which highlights our
longstanding ESG leadership. The report details our efforts to advance our ESG
impact, including by driving high-performance building design and operations to
reduce carbon emissions, mitigating climate-related risk in our real estate
portfolio, and investing in and providing essential infrastructure for
sustainable agrifoodtech companies. It also showcases Alexandria's comprehensive
efforts to catalyze the health, wellness, safety, and productivity of our
employees, tenants, local communities, and the world through the built
environment and beyond, including through our visionary social responsibility
endeavors. Notable initiatives presented in the report that highlight our
innovative approach include:
•Furthering the development of our approach to physical and transitional
climate-related risk by initiating a process to assess and understand potential
physical risk and pathways to mitigate and adapt to climate change, as well as
preparing for the transition to a low-carbon economy and continuing to develop
science-based targets;
•Implementing innovative solutions to minimize fossil fuel use in our
state-of-the-art laboratory development projects, such as at 325 Binney Street,
which will harness geothermal energy to target a LEED Zero Energy certification
and a 92% reduction in fossil fuel use as a key component of its design to be
the most sustainable laboratory building in Cambridge; at 751 Gateway Boulevard,
which is pursuing electrification and is tracking to be the first all-electric
laboratory building in South San Francisco; and at our Alexandria Center® for
Life Science - South Lake Union mega campus in Seattle, where the Company is
incorporating an innovative wastewater heat recovery system; and
•Increasing our investment in renewable electricity to mitigate carbon emissions
in our existing asset base, including through a large-scale solar power purchase
agreement that will significantly increase the supply of renewable electricity
to our Greater Boston market starting in 2024.
•In July 2022, Alexandria Venture Investments was recognized as the #1 most
active corporate investor in biopharma by new deal volume (2021-1H22) for the
fifth consecutive year by Silicon Valley Bank in its "Healthcare Investments and
Exits: Mid-Year 2022 Report." Alexandria's venture activity provides us with,
among other things, mission-critical data and insights into industry innovations
and trends.
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•In September 2022, coinciding with National Suicide Prevention Month, we
announced our deepened partnership with KITA, a non-profit providing
tuition-free summer camp for children who have lost a loved one to suicide, and
the advancement of our eighth social responsibility pillar addressing the mental
health crisis. Through Alexandria's significant support, KITA will have free,
long-term access to 28 acres in Acton, Maine that will serve as the non-profit's
new home and enable it to grow its program and increase the number of children
it serves.
•In October 2022, Alexandria continued to enhance its first social
responsibility pillar focused on advancing human health by empowering NEXT for
AUTISM's development of important support services for autistic individuals and
their families. Alexandria has been forging strategically supportive
partnerships with highly impactful organizations that aim to accelerate
groundbreaking medical innovation to advance vitally needed therapies for
individuals with autism.
•In October 2022, Alexandria's position as a groundbreaking leader in ESG was
reinforced in the 2022 GRESB Real Estate Assessment, with several achievements,
including (i) Regional and Global Sector Leader for buildings in development in
the Science & Technology sector, (ii) #2 ranking for buildings in operation in
the Diversified Listed sector, and (iii) "A" disclosure score for the fifth
consecutive year. Alexandria has earned "Green Star" recognitions in the
operating asset benchmark for the sixth consecutive year and in the development
benchmark for the third consecutive year since its 2020 launch.
•In October 2022, Alexandria was recognized as a Climate Leader by the Sponsors
of Mass Save®, a collaborative of the energy utilities and energy efficiency
service providers in Massachusetts. Utilizing these programs in our Greater
Boston market, we have implemented over 65 energy conservation projects across
more than 40 buildings over the last 10 years, resulting in estimated recurring
annual energy savings of over 5 million kWh. Alexandria was the only real estate
company to be selected in the inaugural cohort of honorees.
•In October 2022, Mr. Marcus, as a newly appointed member of the Prix Galien
USA's esteemed Awards jury, honored groundbreaking medical innovations in life
science. He served on the Prix Galien committee, alongside other influential
science leaders, that recognized the Best Startup, Best Digital Health Solution
and the inaugural Best Incubators, Accelerators and Equity.
•In October 2022, 9880 Campus Point Drive on the Campus Point by Alexandria mega
campus in our University Town Center submarket received an Orchid award for
Architecture from the San Diego Architectural Foundation, and a People's Choice
Orchid. The facility is home to Alexandria GradLabs®, a dynamic platform that is
accelerating the growth of promising early-stage life science companies.
•Alexandria is addressing some of today's most urgent societal challenges
through our eight social responsibility pillars, including the mental health
crisis and opioid addiction. In October 2022:
•Alexandria presented a timely conversation on the state of mental health in
America with former congressman Patrick J. Kennedy, one of the world's leading
voices and policymakers on mental health, at the Galien Forum USA 2022, which
was held at the Alexandria Center® for Life Science - New York City.
•OneFifteen, a novel, data-driven comprehensive care model we developed in
partnership with Verily, celebrated its third anniversary of the campus's
opening in Dayton, Ohio. OneFifteen has treated over 5,800 patients since
opening its doors in October 2019.
•In November 2022, our executive chairman and founder, Joel S. Marcus, presented
at the much-anticipated Annual Baron Investment Conference for a rare second
time. Mr. Marcus opened the program with a presentation on what renowned author
and business strategist Jim Collins describes as our "Superior Results,
Distinctive Impact, and Lasting Endurance."
•In November 2022, Alexandria earned several 2022 TOBY (The Outstanding Building
of the Year) Awards from BOMA (Building Owners and Managers Association) in
Boston, Seattle, and Raleigh-Durham. The TOBY Awards recognize quality in
commercial buildings and reward excellence in building management.
•In our Cambridge/Inner Suburbs submarket: Four recognitions across three of our
premier mega campuses - Alexandria Center® at Kendall Square, Alexandria Center®
at One Kendall Square, and Alexandria Technology Square® - for Corporate
Facility, Laboratory Building, Renovated Building, and Building Under 100,000 SF
categories.
•In our Lake Union submarket: A recognition for 1165 Eastlake Avenue East on The
Eastlake Life Science Campus by Alexandria mega campus in the Corporate Facility
category.
•In our Research Triangle submarket: A recognition for 9 Laboratory Drive on our
Alexandria Center® for AgTech campus in the Life Science category.
•In January 2023, Alexandria Venture Investments was recognized by Silicon
Valley Bank in its "Healthcare Investments and Exits: Annual Report 2022" as the
#1 most active corporate investor in biopharma by new deal volume (2021-2022)
for the sixth consecutive year. Alexandria's venture activity provides us with,
among other things, mission-critical data on and insights into key macro life
science industry and innovation trends.
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                    [[Image Removed: are-20221231_g60.jpg]]
(1)Reflects current score for Alexandria and latest scores available for the
FTSE Nareit All REITs Index companies from Bloomberg Professional Services as of
December 31, 2022.
(2)Top 10% ranking among companies included in the Sustainalytics Global
Universe, based on information available from Bloomberg Professional Services as
of December 31, 2022.
(3)Reflects current scores for Alexandria and latest scores available for the
FTSE Nareit All REITs Index companies on ISS's website as of December 31, 2022.
(4)Top 10% ranking among FTSE Nareit All REITs Index companies, based on
information available from Bloomberg Professional Services as of December 31,
2022.
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                    [[Image Removed: are-20221231_g61.jpg]]

Environmental progress data for 2021 reflected in the chart above received
independent limited assurance from DNV Business Assurance USA, Inc.

(1)2025 environmental goal for Alexandria's cumulative progress relative to a
2015 baseline on a like-for-like basis for buildings in operation that the
Company directly manages.
(2)2025 environmental goal for buildings in operation that Alexandria indirectly
and directly manages. In alignment with industry best practice, the Company
reports waste diversion annually; the 2025 goal is to
achieve a waste diversion rate of at least 45% by 2025.
(3)Progress toward 2025 goals.
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                    [[Image Removed: are-20221231_g62.jpg]]
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Climate change and sustainability

We cannot predict the rate at which climate change will progress. However, the
physical effects of climate change could have a material adverse effect on our
properties, operations, and business. For example, most of our properties are
located along the east and west coasts of the U.S. and some of our properties
are located in close proximity to shorelines. To the extent that climate change
impacts weather patterns, our markets could experience severe weather, including
hurricanes, severe winter storms, wild fires, droughts, and coastal flooding due
to increases in storm intensity and rising sea levels. Over time, these
conditions could result in declining demand for space at our properties, delays
in construction and resulting increased construction costs, or in our inability
to operate the buildings at all. Climate change and severe weather may also have
indirect effects on our business by increasing the cost of, or decreasing the
availability of, property insurance on terms we find acceptable, and by
increasing the costs of energy, maintenance, repair of water and/or wind damage,
and snow removal at our properties. We continue to evaluate our asset base for
potential exposure to the following climate-related risks: sea level rise and
increases in heavy rain, flood, drought, extreme heat, and wildfire. As a part
of Alexandria's risk management program, we purchase property insurance to
mitigate the risk of extreme weather events and natural disasters. However, our
insurance may not adequately cover all of our potential losses. As a result,
there can be no assurance that climate change and severe weather will not have a
material adverse effect on our properties, operations, or business.

Board of directors and leadership oversight

The Audit Committee of Alexandria's Board of Directors oversees the management
of the Company's financial and other systemic risks, including those related to
climate. At a management level, Alexandria's Sustainability Committee, which
comprises members of the executive management team and senior decision makers
spanning the Company's Real Estate Development, Asset Management, Risk, and
Sustainability teams, leads the development and execution of our approach to
climate-related risk.

Proactively managing and mitigating climate risk

The resilience of our properties under a changing climate is paramount both for
our business and our tenants' mission-critical research, development,
manufacturing, and commercialization efforts. We consider the potential impacts
associated with climate change and extreme weather conditions in the
acquisition, design, development, and operation of our buildings and campuses.
Our approach to climate readiness focuses on physical and transition risks and
is aligned to guidelines issued by the Task Force on Climate-related Financial
Disclosures ("TCFD"), which we endorsed in 2018. To this end, we have initiated
a process to assess potential physical risks as well as the pathways to mitigate
and adapt to climate change. We are also preparing for the transition to a
low-carbon economy and continue to advance our approach to sustainable design
and operations to align with our tenants' strategic sustainability goals and
anticipate evolving regulations.

As further detailed in the "Monitoring and preparing for transition" section
below, over the past few years, regulatory bodies in most of our regions have
either passed or proposed legislation to limit the carbon footprint of
buildings, require procurement of clean power, or eliminate natural gas from new
construction projects. Additionally, certain U.S. jurisdictions incorporated
guidelines into their building codes to address the up-front impacts of building
materials such as concrete. Moreover, our tenant preferences for green,
efficient, and healthy buildings continue to rise. As of December 31, 2022, 90%
of Alexandria's top 20 tenants (by annual rental revenue) have set net-zero
carbon and/or carbon neutrality goals. As a result of our own sustainability
mission compelling us to reduce carbon emissions and mitigate climate risk, as
well as the changing regulatory environment and our tenants' expectations, we
have implemented a comprehensive approach to assessing and mitigating physical
risk to our properties as well as to preparing for the transition, as described
below.

Assessing and mitigating physical risk to our properties

We consider two climate change scenarios for the years 2030 and 2050 when
evaluating physical risk to our properties: (1) a business-as-usual scenario in
which greenhouse gas ("GHG") emissions continue to increase with time
(Representative Concentration Pathways ("RCP") 8.5); and (2) a mitigation
scenario in which GHG emissions level off by the year 2050 and decline
thereafter (RCP 4.5). To ensure a conservative evaluation of potential risk at
the asset level, we use the RCP 8.5 scenario, which has greater climate hazard
impacts than RCP 4.5. These climate change assessments covering both acute and
chronic risks enable us to assess preparedness for climate-related risks across
the real estate life cycle.

For our property acquisitions, our risk management and sustainability teams will
conduct climate change evaluations and advise the transactions and asset
management teams of any need for potential property upgrades, which are
evaluated in our financial modeling and transactional decisions.

For our developments and redevelopments of new Class A properties, we will
evaluate the potential impact of sea level rise, storm surges in coastal or
tidal locations, and changing temperatures out to the year 2050. As feasible, we
will consider designs that accommodate potential expansion of cooling
infrastructure to meet future building needs while providing flexibility and
optimization of infrastructure funds for more immediate needs. In water-scarce
areas, we will consider planting drought-resistant vegetation and equipping
buildings to connect to a municipal recycled-water infrastructure where
available and feasible. In areas prone to wildfire, we will work toward
incorporating brush management practices into landscape design and including
enhanced air filtration systems to
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support safe and healthy indoor air. For example, we have designed our
development project at 15 Necco street to account for a high-emissions climate
scenario and incorporate a number of innovative measures, including the
strategic placement of critical infrastructure and building systems to provide
multiple layers of protection, elevate the first floor above predicted 2070
flood evaluation (as published by the City of Boston), and install landscape and
hardscape features to decrease surface water runoff and serve as barriers to
potential flooding.

For our properties located in the areas prone to wildfires or flooding, we are
evaluating the extent to which we have mitigations in place and which
operational and physical improvements may be made. For example, resilience
measures that may be implemented at some of our properties will include the
following:

•In areas prone to fire, we will work toward incorporating brush management
practices into landscape design; we will select less flammable vegetation
species and position them in a reasonable distance from a property; we will
construct building envelopes with fire-resistant materials; and will install
HVAC systems that are able to filter smoke particulates in the air in the event
of fire.
•In areas prone to flooding, critical building mechanical equipment will be
positioned on the roofs or significantly above the projected potential flood
elevations; temporary flood barriers will be stored on-site to be deployed at
building entrances prior to a flood event; property entrances or the first floor
will be elevated above projected present-day and future flood elevations;
backflow preventors on storm/sewer utilities that discharge from the building
will be installed; and the building envelope will be waterproofed up to the
projected flood elevation.

As a part of Alexandria's risk management program, we maintain all-risk property
insurance at the portfolio level to mitigate the risk of extreme weather events
and natural disasters (including floods, wildfires, earthquakes, and wind
events). However, our insurance may not adequately cover all of our potential
losses. As a result, there can be no assurance that climate change and severe
weather will not have a material adverse effect on our properties, operations,
or business.

We also maintain all-risk property insurance at the portfolio level to mitigate
certain risks associated with natural catastrophes (floods, wildfires,
earthquakes, and wind events); our insurance policies, however, may not
completely cover all our potential losses.

Monitoring and preparing for transition

Globally, public concern regarding climate change has continued to escalate. On
November 20, 2022, the United Nations ("UN") held its annual climate summit,
COP27, and as a result of the summit announced an agreement that reaffirmed the
goal to limit the global temperature rise to the crucial temperature threshold
of 1.5 degrees Celsius above pre-industrial levels. The agreement also provided
a loss and damage fund for countries most vulnerable to climate disasters. As of
the date of this report, no decisions have been made on who should pay into the
fund, where the funds will come from, and which countries will benefit, and it
is unknown how or if the terms of the agreement will be carried out effectively
or whether these funds will be sufficient to mitigate the effects of damages
related to climate change over time.

In August 2021, the United Nations' Intergovernmental Panel on Climate Change
issued a detailed report titled "Climate Change 2021: The Physical Science
Basis," which provides comprehensive evidence of the catastrophic impact of GHG
emissions on climate change, including increases in severe and dangerous weather
conditions. In the U.S., in June 2019, President Biden identified climate change
as one of his administration's top priorities and pledged to seek measures that
would pave the path for the U.S. to eliminate net GHG pollution by the year
2050. In April 2021, President Biden announced his plan to reduce the U.S. GHG
emissions by at least 50% by the year 2030. These environmental goals earned a
prominent place in President Biden's $1.2 trillion infrastructure bill, which
was signed into law on November 15, 2021. Also, in August 2022, U.S. Congress
signed into law the Inflation Reduction Act of 2022 ("IRA"), which directs
nearly $400 billion for federal spending to be used toward reducing carbon
emissions and funding clean energy over the next 10 years and is designed to
encourage private investment in clean energy, transport, and manufacturing. It
is yet unknown what impact, if any, the IRA may have on us.

Numerous states and municipalities have adopted state and local laws and
policies on climate change and emission reduction targets, including, but not
limited to, the following:

California

•In September 2018, Senate Bill 100 was signed into law in California,
accelerating the state's renewable portfolio standard target dates and setting a
policy of meeting 100% of retail electricity sales from eligible renewables and
zero-carbon resources by December 31, 2045.

•In September 2020, Governor Newsom signed an executive order requiring all new
passenger cars and trucks sold in the state to be emission free by 2035.

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•In November 2020, the San Francisco Board of Supervisors adopted an
All-Electric New Construction Ordinance that will require all new buildings
(residential and non-residential) with initial building permit applications made
on or after June 1, 2021 to have all-electric indoor and outdoor
space-conditioning, water heating, cooking, and clothes drying systems.

•In September 2021, Governor Newsom signed legislation aimed at achieving
net-zero GHG emissions associated with cement used within the state no later
than 2045.

•In September 2022, Governor Gavin Newsom enacted a package of legislation that,
among other measures, will allow the state to achieve carbon neutrality no later
than 2045; establish an 85% emissions reduction target by 2045; achieve 90% and
95% clean energy by 2035 and 2040, respectively; and establish a regulatory
framework for removing carbon pollution.

Massachusetts

•In March 2021, Senate Bill 9 was signed into law, updating the state’s climate
policy to ensure net-zero GHG emissions by 2050 and establishing interim
emission reduction targets for several sectors, including commercial and
industrial buildings.

•In September 2021, the Boston City Council approved an amendment to the
Building Emissions Reduction and Disclosure Ordinance ("BERDO 2.0"), which
imposes enforceable emission limits on buildings over 20,000 square feet
starting in 2025-2030, targeting zero emissions by 2050. Furthermore, BERDO 2.0
adds a requirement that water and energy use data reported to the City of Boston
be verified by a third-party. (An annual reporting requirement starting in 2022
for year 2021 was imposed by BERDO 1.0.)

•In August 2022, Governor Charlie Baker enacted a bill to enable the state to
meet its climate targets, with key provisions, including mandating all new
vehicles sold to be emission free by 2035; providing certain municipalities the
ability to ban fossil fuel hookups in new construction or major renovation
projects; requiring the Massachusetts Bay Transportation Authority to electrify
its entire fleet of public transportation vehicles by 2040 and purchase only
zero-emission buses starting in 2030; and phasing out incentives for fossil
fuel-powered heating and cooling systems.

New York

•In July 2019, the Climate Leadership and Community Protection Act (“CLCPA”) was
signed into law, establishing a statewide framework to reduce net GHG emissions.

•In December 2022, New York approved the Scoping Plan, which details actions
required to advance directives stated in the CLCPA and to enable New York to
achieve:
•70% renewable energy by 2030;
•Zero emissions electricity by 2040;
•40% GHG emissions reduction below 1990 levels by 2030;
•85% GHG emissions reduction below 1990 levels by 2050; and
•Net-zero GHG emissions statewide by 2050.

•In May 2019, New York City enacted Local Law 97 as a part of the Climate
Mobilization Act aimed at reducing GHG emissions by 80% from commercial and
residential buildings by 2050. Starting in 2024, this law will place carbon caps
on most buildings larger than 25,000 square feet.

•In December 2021, New York City passed Local Law 154, which will phase out
fossil fuel usage in newly constructed residential and commercial buildings
starting in 2024 for lower-rise buildings and in 2027 for taller buildings. With
few exceptions, all buildings constructed in New York City must be fully
electric by 2027.

Washington

•In May 2019, the Clean Buildings Act was signed into law in the state of
Washington. The law imposed a cap on the energy used in commercial buildings
larger than 50,000 square feet and established a phase-in compliance requirement
starting in 2026. In March 2022, the law was expanded to apply to commercial
buildings exceeding 20,000 square feet.

•In 2020, the State of Washington set GHG emission limits, which will require
the state to reduce emissions levels by 45% below 1990 levels by 2030 and by 70%
below 1990 levels by 2040, and to achieve net-zero emissions by 2050.

Maryland

•In April 2022, the Climate Solutions Now Act of 2022 became law in Maryland.
The law requires new and existing buildings over 35,000 RSF:

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•To report energy use data annually beginning in 2025;
•To reduce direct GHG emissions by 20% from 2025 levels by 2030; and
•To have net-zero direct emissions by 2040.

The law also requires the state to reduce its GHG emissions by 60% below 2006
levels by 2031 and to achieve net-zero GHG emissions by 2045.

North Carolina

•In January 2022, Governor Roy Cooper signed an executive order that updates the
state's GHG emission goals to require a reduction of 50% below 2005 levels by
2030 and achievement of net-zero GHG emissions by 2050.

Alexandria has implemented a comprehensive approach to responding to transition
risk through the following strategies:

Decarbonizing construction

Alexandria targets LEED Gold or Platinum certification for new ground-up
developments. Through our sustainability goals for new developments, we deliver
energy- and resource-efficient buildings that meet or exceed tenant, city,
state, and federal requirements for energy and water efficiency, material
sourcing, biodiversity, and alternative transportation.

We are also revolutionizing the design of our buildings through innovative
low-carbon solutions and are pursuing more advanced certifications in Zero
Energy from LEED and the International Living Future Institute (“ILFI”) for two
projects:

•At 325 Binney Street, on our Alexandria Center at One Kendall Square mega
campus in our Cambridge submarket, the building design harnesses geothermal
energy and is expected to yield a 92% reduction in fossil fuel consumption. The
project is targeting LEED Platinum Core & Shell and LEED Zero Energy
certifications.

•At 685 Gateway Boulevard, an amenities building on our Alexandria Technology
Center® - Gateway mega campus in our South San Francisco submarket, we are
targeting Zero Energy Certification through ILFI by leveraging design strategies
such as building envelope optimization, high-performance features, and on-site
energy generation.

With several jurisdictions shifting (or with plans to shift soon) from fossil
fuels for heating and requiring all electric buildings as a strategy to reduce
carbon emissions associated with building operations, we have proactively
incorporated electrification into new building designs, with one project
completed and three currently in progress. We also continue to explore further
opportunities to heat and cool our buildings with alternative energy, such as
geothermal and wastewater heat recovery.

Embodied carbon from the building sector accounts for 11% of annual global GHG
emissions, and Alexandria is playing a leadership role in the industry's effort
to measure and ultimately reduce carbon associated with the construction
process. In 2019, Alexandria became a sponsor and the first REIT to use the
Carbon Leadership Forum's Embodied Carbon in Construction Calculator (EC3) tool.
For new construction projects, we seek to procure products with Environmental
Product Declarations ("EPDs"), which document and verify information on product
composition and environmental impact. Using such EPDs, Alexandria targets a 10%
reduction in embodied carbon for new ground-up development projects.

Investing in renewable energy

Alexandria anticipates a significant increase in the percentage of renewable
electricity used by our properties beginning in 2024 as a result of a new
large-scale solar power purchase agreement ("PPA") that we executed in our
Greater Boston market. Starting in 2024, the PPA is expected to supply the
Greater Boston market with new renewable electricity with power produced by a
solar farm that will be connected to the New England grid. With this contract in
place, 53% of Alexandria's total electricity consumption is expected to be
renewable based on electric usage during 2021.

Reducing the environmental footprint of buildings in operation

Our sustainability mission compels us toward industry-leading sustainability
practices and performance that can help reduce operating expenses and result in
higher occupancy levels, longer lease terms, higher rental income, higher
returns, and greater long-term asset value, and thus enable us to capture
climate-related opportunities. Our ongoing efforts to reduce consumption are
driven by our commitment to operational excellence in sustainability, building
efficiency, and service to our tenants. Alexandria's 2025 sustainability goals
for buildings in operation and new ground-up construction projects provide the
framework, metrics, and targets that guide the Company's focus on continuous,
long-term improvement. For buildings in operation, we set goals to reduce carbon
emissions, energy consumption, and potable water consumption and increase waste
diversion by the year 2025.


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                    [[Image Removed: are-20221231_g63.jpg]]
(1)2025 environmental goal for Alexandria's cumulative progress relative to a
2015 baseline on a like-for-like basis for buildings in operation that the
Company directly manages.
(2)2025 environmental goal for buildings in operation that Alexandria indirectly
and directly manages. In alignment with industry best practice, the Company
reports waste diversion annually; the 2025 goal is to achieve a waste diversion
rate of at least 45% by 2025.
(3)Progress toward 2025 goal.

As we look to the future, we are creating our long-term strategy and plan for
the net zero-carbon transition. We are developing an approach to set
industry-leading science-based targets that will provide a pathway to reduce GHG
emissions and continue our leadership in sustainability.

Refer to “Item 1A. Risk factors” in this annual report on Form 10-K for
discussion of the risks we face from climate change.

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Results of operations

We present a tabular comparison of items, whether gain or loss, that may
facilitate a high-level understanding of our results and provide context for the
disclosures included in this annual report on Form 10-K. We believe that such
tabular presentation promotes a better understanding for investors of the
corporate-level decisions made and activities performed that significantly
affect comparison of our operating results from period to period. We also
believe that this tabular presentation will supplement for investors an
understanding of our disclosures and real estate operating results. Gains or
losses on sales of real estate and impairments of assets classified as held for
sale are related to corporate-level decisions to dispose of real estate. Gains
or losses on early extinguishment of debt are related to corporate-level
financing decisions focused on our capital structure strategy. Significant
realized and unrealized gains or losses on non-real estate investments,
impairments of real estate and non-real estate investments, and acceleration of
stock compensation expense due to the resignation of an executive officer are
not related to the operating performance of our real estate assets as they
result from strategic, corporate-level non-real estate investment decisions and
external market conditions. Impairments of non-real estate investments are not
related to the operating performance of our real estate as they represent the
write-down of non-real estate investments when their fair values decrease below
their respective carrying values due to changes in general market or other
conditions outside of our control. Significant items included in the tabular
disclosure for current periods are described in further detail under this Item 7
in this annual report on Form 10-K. Key items included in net income
attributable to Alexandria's common stockholders for the years ended
December 31, 2022 and 2021 and the related per share amounts were as follows:
                                                                            Year Ended December 31,
                                                        2022             2021                 2022                 2021
(In millions, except per share amounts)                        Amount                          Per Share - Diluted
Impairment of real estate                            $ (65.0)         $ (52.7)         $     (0.40)             $ (0.35)
Loss on early extinguishment of debt                    (3.3)           (67.3)               (0.02)               (0.46)
Gain on sales of real estate(1)                        537.9            126.6                 3.33                 0.86
Acceleration of stock compensation expense due to
executive officer resignation                           (7.2)               -                (0.04)                   -
Unrealized (losses) gains on non-real estate
investments                                           (412.2)            43.6                (2.55)                0.30
Impairment of non-real estate investments              (20.5)               -                (0.13)                   -
Significant realized gains on non-real estate
investments                                                -            110.1                    -                 0.75
Total                                                $  29.7          $ 160.3          $      0.19              $  1.10

(1)Refer to “Funds from operations and funds from operations, as adjusted,
attributable to Alexandria Real Estate Equities, Inc.’s common stockholders” in
the “Non-GAAP measures and definitions” section within this Item 7 for
additional information.

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Same properties

We supplement an evaluation of our results of operations with an evaluation of
operating performance of certain of our properties, referred to as "Same
Properties." For additional information on the determination of our Same
Properties portfolio, refer to the definition of "Same property comparisons" in
the "Non-GAAP measures and definitions" section within this Item 7 in this
annual report on Form 10-K. The following table presents information regarding
our Same Properties as of December 31, 2022 and 2021:

                                                                                        December 31,
                                                                               2022                       2021

Percentage change in net operating income over comparable
period from prior year

                                                                  6.6%                    4.2  %

Percentage change in net operating income (cash basis) over
comparable period from prior year

            9.6%                    7.1  %
Operating margin                                                                         70%                       72%
Number of Same Properties                                                             253                          247
RSF                                                                               26,121,796                23,490,412
Occupancy - current-period average                                                     95.7%                   96.6  %
Occupancy - same-period prior-year average                                             94.7%                   96.3  %




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The following table reconciles the number of Same Properties to total properties
for the year ended December 31, 2022:

Development - under construction                                          Properties
4 Davis Drive                                                                        1
201 Brookline Avenue                                                                 1
15 Necco Street                                                                      1
751 Gateway Boulevard                                                          1
325 Binney Street                                                              1
1150 Eastlake Avenue East                                                      1
9810 Darnestown Road                                                           1
99 Coolidge Avenue                                                             1
500 North Beacon Street and 4 Kingsbury Avenue                              

2

9808 Medical Center Drive                                                   

1

6040 George Watts Hill Drive                                                   1
1450 Owens Street                                                              1
10075 Barnes Canyon Road                                                       1
                                                                              14
Development - placed into service after January 1, 2021                   Properties
1165 Eastlake Avenue East                                                      1
201 Haskins Way                                                                1
825 and 835 Industrial Road                                                    2
9950 Medical Center Drive                                                      1
3115 Merryfield Row                                                            1
8 and 10 Davis Drive                                                           2
5 and 9 Laboratory Drive                                                             2
10055 Barnes Canyon Road                                                             1
10102 Hoyt Park Drive                                                          1
                                                                              12
Redevelopment - under construction                                        

Properties

2400 Ellis Road, 40 and 41 Moore Drive, and 14 TW Alexander Drive

   4
840 Winter Street                                                              1
20400 Century Boulevard                                                        1
9601 and 9603 Medical Center Drive                                             2
One Rogers Street                                                              1
40, 50, and 60 Sylvan Road                                                     3

Alexandria Center® for Advanced Technologies – Monte Villa Parkway

    6
651 Gateway Boulevard                                                          1
8800 Technology Forest Place                                                   1
Canada                                                                         2
Other                                                                          2
                                                                              24


Redevelopment - placed into service after
January 1, 2021                                                        Properties
700 Quince Orchard Road                                                     1
3160 Porter Drive                                                           1
5505 Morehouse Drive                                                        1
The Arsenal on the Charles                                                 11
30-02 48th Avenue                                                           1
Other                                                                       1
                                                                           16
Acquisitions after January 1, 2021                                     

Properties

3301, 3303, 3305, 3307, 3420, and 3440 Hillview Avenue                      6
Sequence District by Alexandria                                             5
Alexandria Center® for Life Science - Fenway                                1
550 Arsenal Street                                                          1
1501-1599 Industrial Road                                                   6
One Investors Way                                                           2
2475 Hanover Street                                                         1
10975 and 10995 Torreyana Road                                              2
Pacific Technology Park                                                     5
1122 and 1150 El Camino Real                                                2
12 Davis Drive                                                              1
8505 Costa Verde Boulevard and 4260 Nobel Drive                             2
225 and 235 Presidential Way                                                2
104 TW Alexander Drive                                                      4
One Hampshire Street                                                        1
Intersection Campus                                                        12
100 Edwin H. Land Boulevard                                                 1
10010 and 10140 Campus Point Drive and 4275 Campus Point Court              3
446 and 458 Arsenal Street                                                  2
35 Gatehouse Drive                                                          1
1001 Trinity Street and 1020 Red River Street                               2
Other                                                                      37
                                                                           99
Unconsolidated real estate joint ventures                                   4
Properties held for sale                                                   

10

Total properties excluded from Same Properties                            

179

Same Properties                                                           

253

Total properties in North America as of December 31, 2022                 

432

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Comparison of results for the year ended December 31, 2022 to the year ended
December 31, 2021

The following table presents a comparison of the components of net operating
income for our Same Properties and Non-Same Properties for the year ended
December 31, 2022, compared to the year ended December 31, 2021. We provide a
comparison of the results for the year ended December 31, 2021 to the year ended
December 31, 2020, including a comparison of the components of net operating
income for our Same Properties and Non-Same Properties for the year ended
December 31, 2021, compared to the year ended December 31, 2020, in the "Results
of operations" section within this Item 7 of our annual report on Form 10-K for
the year ended December 31, 2021. Refer to the "Non-GAAP measures and
definitions" section within this Item 7 in this annual report on Form 10-K for
definitions of "Tenant recoveries" and "Net operating income" and their
reconciliations from the most directly comparable financial measures presented
in accordance with GAAP, income from rentals and net income, respectively.


                                                                            Year Ended December 31,
(Dollars in thousands)                                2022                 2021              $ Change             % Change
Income from rentals:
Same Properties                                  $ 1,385,380          $ 1,289,246          $  96,134                     7.5  %
Non-Same Properties                                  564,718              329,346            235,372                    71.5
Rental revenues                                    1,950,098            1,618,592            331,506                    20.5

Same Properties                                      478,333              407,450             70,883                    17.4
Non-Same Properties                                  147,609               82,207             65,402                    79.6
Tenant recoveries                                    625,942              489,657            136,285                    27.8

Income from rentals                                2,576,040            2,108,249            467,791                    22.2

Same Properties                                          620                  479                141                    29.4
Non-Same Properties                                   12,302                5,422              6,880                   126.9
Other income                                          12,922                5,901              7,021                   119.0

Same Properties                                    1,864,333            1,697,175            167,158                     9.8
Non-Same Properties                                  724,629              416,975            307,654                    73.8
Total revenues                                     2,588,962            2,114,150            474,812                    22.5

Same Properties                                      561,301              475,209             86,092                    18.1
Non-Same Properties                                  221,852              148,346             73,506                    49.6
Rental operations                                    783,153              623,555            159,598                    25.6

Same Properties                                    1,303,032            1,221,966             81,066                     6.6
Non-Same Properties                                  502,777              268,629            234,148                    87.2
Net operating income                             $ 1,805,809          $ 1,490,595          $ 315,214                    21.1  %

Net operating income - Same Properties           $ 1,303,032          $ 1,221,966          $  81,066                     6.6  %
Straight-line rent revenue                           (54,991)             (79,602)            24,611                   (30.9)
Amortization of acquired below-market
leases                                               (26,224)             (27,252)             1,028                    (3.8)
Net operating income - Same Properties
(cash basis)                                     $ 1,221,817          $ 1,115,112          $ 106,705                     9.6  %



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Income from rentals

Total income from rentals for the year ended December 31, 2022 increased by
$467.8 million, or 22.2%, to $2.6 billion, compared to $2.1 billion for the year
ended December 31, 2021, as a result of increase in rental revenues and tenant
recoveries, as discussed below.

Rental revenues

Total rental revenues for the year ended December 31, 2022 increased by $331.5
million, or 20.5%, to $2.0 billion, compared to $1.6 billion for the year ended
December 31, 2021. The increase was primarily due to an increase in rental
revenues from our Non-Same Properties related to 3.9 million RSF of development
and redevelopment projects placed into service subsequent to January 1, 2021 and
99 operating properties aggregating 9.6 million RSF acquired subsequent to
January 1, 2021.

Rental revenues from our Same Properties for the year ended December 31, 2022
increased by $96.1 million, or 7.5%, to $1.4 billion, compared to $1.3 billion
for the year ended December 31, 2021. The increase was primarily due to rental
rate increases on lease renewals and re-leasing of space since January 1, 2021
and an increase in occupancy from our Same Properties to 95.7% for the year
ended December 31, 2022 from 94.7% for the year ended December 31, 2021.

Tenant recoveries

Tenant recoveries for the year ended December 31, 2022 increased by $136.3
million, or 27.8%, to $625.9 million, compared to $489.7 million for the year
ended December 31, 2021. This increase was partially from our Non-Same
Properties related to our development and redevelopment projects placed into
service and properties acquired subsequent to January 1, 2021, as discussed
above under "Rental revenues."

Same Properties tenant recoveries for the year ended December 31, 2022 increased
by $70.9 million, or 17.4%, primarily due to higher operating expenses during
the year ended December 31, 2022, as discussed under "Rental operations" below.
As of December 31, 2022, approximately 93% of our leases (on an annual rental
revenue basis) were triple net leases, which require tenants to pay
substantially all real estate taxes, insurance, utilities, repairs and
maintenance, common area expenses, and other operating expenses (including
increases thereto) in addition to base rent.

Other income

Other income for the year ended December 31, 2022 increased by $7.0 million, or
119.0%, to $12.9 million, compared to $5.9 million for the year ended December
31, 2021. The increase in other income was primarily due to an increase in fees
for construction management services provided to tenants and an increase in
interest income resulting from larger average deposits in, and higher interest
rates earned by, our money market accounts during the year ended
December 31, 2022, compared to the year ended December 31, 2021.

Rental operations

Total rental operating expenses for the year ended December 31, 2022 increased
by $159.6 million, or 25.6%, to $783.2 million, compared to $623.6 million for
the year ended December 31, 2021. The increase was partially due to incremental
expenses related to our Non-Same Properties, which consist of development and
redevelopment projects placed into service and acquired properties, as discussed
above under "Rental revenues."

Same Properties rental operating expenses increased by $86.1 million, or 18.1%,
to $561.3 million during the year ended December 31, 2022, compared to $475.2
million for the year ended December 31, 2021. The increase was primarily the
result of increases in (i) utilities expenses aggregating $21.4 million,
primarily due to increased electricity usage and rates; (ii) property tax
expenses aggregating $16.4 million, primarily related to changes in the
ownership of four of our consolidated real estate joint ventures located in our
Mission Bay submarket during the three months ended December 31, 2021 and
resulting tax reassessment of values of the properties held by these joint
ventures; and (iii) higher contract services costs aggregating $12.7 million,
primarily due to increases in security services and trash and janitorial service
consumption and rates.

General and administrative expenses

General and administrative expenses for the year ended December 31, 2022
increased by $25.8 million, or 17.0%, to $177.3 million, compared to
$151.5 million for the year ended December 31, 2021. For the year ended
December 31, 2022, approximately $7.2 million of the increase was the result of
the acceleration of stock compensation expense recognized in connection with the
resignation of Stephen A. Richardson, our former co-chief executive officer,
which became effective on July 31, 2022. The remaining increase was primarily
due to the costs related to corporate related costs, additional headcount, and
corporate responsibility efforts, as well as the continued growth in the depth
and breadth of our operations in multiple markets, including development and
redevelopment projects placed into service and properties acquired, as discussed
above under "Rental revenues." As a percentage of net operating income, our
general and administrative expenses for the years ended December 31, 2022 and
2021 were 9.8% and 10.2%, respectively.
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Interest expense

Interest expense for the years ended December 31, 2022 and 2021 consisted of the
following (dollars in thousands):

                                                    Year Ended December 31,
 Component                                          2022               2021             Change
 Gross interest                                $    372,848       $   312,806       $    60,042
 Capitalized interest                              (278,645)         (170,641)         (108,004)
 Interest expense                              $     94,203       $   142,165       $   (47,962)

 Average debt balance outstanding(1)           $ 10,374,497       $ 

9,071,513 $ 1,302,984

 Weighted-average annual interest rate(2)               3.6  %            3.4  %            0.2  %

(1)Represents the average debt balance outstanding during the respective
periods.
(2)Represents total interest incurred divided by the average debt balance
outstanding during the respective periods.

The net change in interest expense during the year ended December 31, 2022,
compared to the year ended December 31, 2021, resulted from the following
(dollars in thousands):

Component                                                  Interest Rate(1)                 Effective Date              Change
Increases in interest incurred due to:
Issuances of debt:
$850 million unsecured senior notes payable                          3.08  %                 February 2021           $   3,342
$900 million unsecured senior notes payable -                        2.12  %                 February 2021               2,384
green bond
$1.0 billion unsecured senior notes payable                          3.63  %                 February 2022              31,138
$800 million unsecured senior notes payable -                        3.07  %                 February 2022              20,804
green bond
Fluctuation in interest rate and average
balance:
$2.0 billion commercial paper program                                                                                    7,167
Other increase in interest                                                                                               3,032
Total increases                                                                                                         67,867
Decreases in interest incurred due to:
Repayments of debt:
$650 million unsecured senior notes payable -                        4.03  %                  March 2021                (2,945)
green bond
Secured notes payable                                                3.40  %                  April 2022                (4,880)
Total decreases                                                                                                         (7,825)
Change in gross interest                                                                                                60,042
Increase in capitalized interest                                                                                      (108,004)
Total change in interest expense                                                                                     $ (47,962)

(1)Represents the weighted-average interest rate as of the end of the applicable
period, including amortization of loan fees, amortization of debt premiums
(discounts), and other bank fees.

Depreciation and amortization

Depreciation and amortization expense for the year ended December 31, 2022
increased by $181.1 million, or 22.1%, to $1.0 billion, compared to $821.1
million for the year ended December 31, 2021. The increase was primarily due to
additional depreciation from development and redevelopment projects placed into
service and properties acquired, as discussed above under "Rental revenues."

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Impairment of real estate

During the year ended December 31, 2022, we recognized real estate impairment
charges aggregating $65.0 million, as detailed below:

•Impairment charges aggregating $44.1 million, which consisted of write-offs of
pre-acquisition costs, including the $38.3 million write-off of our entire
investment in a future development project aggregating over 600,000 RSF in one
of our existing submarkets in California. This impairment was recognized upon
our decision to no longer proceed with this project as a result of a
deteriorated macroeconomic environment that negatively impacted the financial
outlook for this project.

•Impairment charges aggregating $20.9 million recognized during the three months
ended December 31, 2022 to reduce the carrying amount of 10 properties and a
land parcel located in multiple submarkets to their respective estimated fair
value, less costs to sell, upon classification as held for sale. We expect to
sell these real estate assets in 2023.

During the year ended December 31, 2021, we recognized impairment charges
aggregating $52.7 million, primarily related to impairment charges for a land
parcel in our SoMa submarket for the development of an office property and a
property located in our non-core submarket, to its estimated fair value less
costs to sell.

For more information, refer to the "Sales of real estate assets and impairment
charges" section in Note 3 - "Investments in real estate" to our consolidated
financial statements under Item 15 in this annual report on Form 10-K.

Loss on early extinguishment of debt

During the year ended December 31, 2022, we recognized a loss on early
extinguishment of debt of $3.3 million, including a prepayment penalty and the
write-off of unamortized loan fees, related to the repayment of two secured
notes payable.

During the year ended December 31, 2021, we recognized a loss on early
extinguishment of debt of $67.3 million, including the write-off of unamortized
loan fees primarily related to the refinancing of our 4.00% unsecured senior
notes payable aggregating $650.0 million due in 2024 pursuant to a partial cash
tender offer.

Equity in earnings of unconsolidated real estate joint ventures

During the years ended December 31, 2022 and 2021, we recognized equity in
earnings of unconsolidated real estate joint ventures of $645 thousand and $12.3
million, respectively. The decrease is primarily related to the sale of our
investment in an unconsolidated real estate joint venture in our Greater
Stanford submarket in December 2021.

Refer to Note 4 - "Consolidated and unconsolidated real estate joint ventures"
to our consolidated financial statements under Item 15 in this annual report on
Form 10-K for additional information.

Investment income

During the year ended December 31, 2022, we recognized investment losses
aggregating $331.8 million, which consisted of $80.4 million of realized gains
and $412.2 million of unrealized losses. Realized gains of $80.4 million
primarily consisted of sales of investments and distributions received,
partially offset by impairment charges of $20.5 million primarily related to
investments in privately held entities that do not report NAV. Unrealized losses
of $412.2 million during the year ended December 31, 2022 primarily consisted of
decreases in fair values of our investments in publicly traded companies and
investments in privately held entities that report NAV.

During the year ended December 31, 2021, we recognized investment income
aggregating $259.5 million, which consisted of $215.8 million of realized gains
and $43.6 million of unrealized gains.

For more information about our investments, refer to Note 7 - "Investments" to
our consolidated financial statements under Item 15 in this annual report on
Form 10-K. For our impairments accounting policy, refer to the "Investments"
section in Note 2 - "Summary of significant accounting policies" to our
consolidated financial statements under Item 15 in this annual report on Form
10-K.

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Gain on sales of real estate

During the year ended December 31, 2022, we recognized $537.9 million of gains
related to the completion of nine real estate dispositions across various
markets. The gains were classified in gain on sales of real estate within our
consolidated statements of operations for the year ended December 31, 2022.

During the year ended December 31, 2021, we recognized $126.6 million of gains,
which included a $101.1 million gain recognized in connection with the sale of
our entire 49.0% interest in the unconsolidated real estate joint venture at
Menlo Gateway and a $23.2 million gain related to the sale of a property located
in our Seattle market. The gains were classified in gain on sales of real estate
within our consolidated statements of operations for the year ended December 31,
2021.

For more information about our sales of real estate, refer to the "Sales of real
estate assets and impairment charges" section in Note 3 - "Investment in real
estate" to our consolidated financial statements under Item 15 in this annual
report on Form 10-K.

Other comprehensive income

Total other comprehensive income for the year ended December 31, 2022 decreased
by $12.8 million to aggregate net unrealized losses of $13.5 million, compared
to net unrealized losses of $0.7 million for the year ended December 31, 2021,
primarily due to unrealized losses on foreign currency translation related to
our operations in Canada and China.
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Summary of capital expenditures

Our construction spending for the year ended December 31, 2022 consisted of the
following (in thousands):

                                                                      Year 

Ended

  Construction Spending                                           December 

31, 2022

  Additions to real estate - consolidated projects               $        

3,307,313

  Investments in unconsolidated real estate joint ventures                  

1,442

  Contributions from noncontrolling interests                              

(320,057)

  Construction spending (cash basis)                                      

2,988,698

  Change in accrued construction                                            102,801
  Construction spending                                          $        3,091,499

The following table summarizes the total projected construction spending for the
year ending December 31, 2023, which includes interest, property taxes,
insurance, payroll, and other indirect project costs (in thousands):

                                                                                    Year Ending
Projected Construction Spending                                                  December 31, 2023
Development, redevelopment, and pre-construction projects                   

$ 3,549,000
Contributions from noncontrolling interests (consolidated real estate
joint ventures)

                                                                          (794,000)   (1)
Revenue-enhancing and repositioning capital expenditures                                  160,000
Non-revenue-enhancing capital expenditures                                                 60,000
Guidance midpoint                                                              $        2,975,000



(1)Approximately 55% of this amount represents contractual funding commitments
from our existing consolidated real estate joint ventures, and the remaining
amount is from projected new real estate joint ventures.

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Projected results

Based on our current view of existing market conditions and certain current
assumptions, we present guidance for EPS attributable to Alexandria's common
stockholders - diluted and funds from operations per share attributable to
Alexandria's common stockholders - diluted for the year ending December 31,
2023, as set forth in the table below. The tables below also provide a
reconciliation of EPS attributable to Alexandria's common stockholders -
diluted, the most directly comparable financial measure presented in accordance
with GAAP, to funds from operations per share, a non-GAAP measure, and other key
assumptions included in our updated guidance for the year ending December 31,
2023. There can be no assurance that actual amounts will not be materially
higher or lower than these expectations. Refer to our discussion of
"Forward-looking statements" included in the beginning of Part I in this annual
report on Form 10-K.

Projected 2023 Earnings per Share and Funds From Operations per Share Attributable to Alexandria's Common
Stockholders - Diluted
Earnings per share(1)                                                                 $3.41 to $3.61
Depreciation and amortization of real estate assets                                        5.50

Allocation of unvested restricted stock awards                                            (0.05)
Funds from operations per share(2)                                                    $8.86 to $9.06

Midpoint                                                                                   $8.96


(1)Excludes unrealized gains or losses after December 31, 2022 that are required
to be recognized in earnings and are excluded from funds from operations per
share, as adjusted.
(2)Refer to the definition of "Funds from operations and funds from operations,
as adjusted, attributable to Alexandria Real Estate Equities, Inc.'s common
stockholders" in the "Non-GAAP measures and definitions" section within this
Item 7 in this annual report on Form 10-K for additional information.

Key Assumptions(1)                                                                 2023 Guidance
(Dollars in millions)                                                        Low                 High

Occupancy percentage for operating properties in North America as
of December 31, 2023

                                                            94.8%           95.8%
Lease renewals and re-leasing of space:
Rental rate increases                                                           27.0%           32.0%
Rental rate increases (cash basis)                                              11.0%           16.0%
Same property performance:
Net operating income increase                                                    2.0%            4.0%
Net operating income increase (cash basis)                                       4.0%            6.0%
Straight-line rent revenue                                              $      130          $  145
General and administrative expenses                                     $      183          $  193
Capitalization of interest                                              $      342          $  362
Interest expense                                                        $       74          $   94


(1)Our assumptions presented in the table above are subject to a number of
variables and uncertainties, including those discussed as "Forward-looking
statements" under Part I; "Item 1A. Risk factors"; and Item 7. Management's
discussion and analysis of financial condition and results of operations in this
annual report on Form 10-K. To the extent our full-year earnings guidance is
updated during the year, we will provide additional disclosure supporting
reasons for any significant changes to such guidance.

Key Credit Metrics                                                          2023 Guidance
Net debt and preferred stock to Adjusted EBITDA - fourth quarter        Less than or equal to
of 2023 annualized                                                          

5.1x

Fixed-charge coverage ratio - fourth quarter of 2023 annualized             

4.5x to 5.0x

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Consolidated and unconsolidated real estate joint ventures

We present components of balance sheet and operating results information for the
noncontrolling interest share of our consolidated real estate joint ventures and
for our share of investments in unconsolidated real estate joint ventures to
help investors estimate balance sheet and operating results information related
to our partially owned entities. These amounts are estimated by computing, for
each joint venture that we consolidate in our financial statements, the
noncontrolling interest percentage of each financial item to arrive at the
cumulative noncontrolling interest share of each component presented. In
addition, for our real estate joint ventures that we do not control and do not
consolidate, we apply our economic ownership percentage to the unconsolidated
real estate joint ventures to arrive at our proportionate share of each
component presented. Refer to Note 4 - "Consolidated and unconsolidated real
estate joint ventures" to our consolidated financial statements under Item 15 in
this annual report on Form 10-K for further discussion.

Consolidated Real Estate Joint Ventures

                                                                                                Noncontrolling(1)                             Operating RSF
                          Property/Market/Submarket                                              Interest Share                                  at 100%
50 and 60 Binney Street/Greater Boston/Cambridge/Inner Suburbs                                               66.0  %                             

532,395

75/125 Binney Street/Greater Boston/Cambridge/Inner Suburbs                                                  60.0  %                             

388,270

100 and 225 Binney Street and 300 Third Street/Greater Boston/Cambridge/Inner
Suburbs

                                                                                                      70.0  % (2)                         

870,106

99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs                                                    25.0  %                                   

– (3)
Alexandria Center® for Science and Technology – Mission Bay/San Francisco Bay

                                75.0  %                           

1,005,989

Area/Mission Bay(4)
1450 Owens Street/San Francisco Bay Area/Mission Bay                                                         40.3  % (2)(5)                            -       (3)
601, 611, 651, 681, 685, and 701 Gateway Boulevard/San Francisco Bay                                         50.0  %                             

789,567

Area/South San Francisco
751 Gateway Boulevard/San Francisco Bay Area/South San Francisco                                             49.0  %                                   -       (3)
211 and 213 East Grand Avenue/San Francisco Bay Area/South San Francisco                                     70.0  %                             

300,930

500 Forbes Boulevard/San Francisco Bay Area/South San Francisco                                              90.0  %                             

155,685

Alexandria Center® for Life Science – Millbrae/San Francisco Bay Area/South

                                  54.7  %                         

–

San Francisco
3215 Merryfield Row/San Diego/Torrey Pines                                                                   70.0  % (2)                         

170,523

Campus Point by Alexandria/San Diego/University Town Center(6)                                               45.0  %                           

1,337,916

5200 Illumina Way/San Diego/University Town Center                                                           49.0  %                             

792,687

9625 Towne Centre Drive/San Diego/University Town Center                                                     49.9  %                             

163,648

SD Tech by Alexandria/San Diego/Sorrento Mesa(7)                                                             50.0  %                             

876,869

Pacific Technology Park/San Diego/Sorrento Mesa                                                              50.0  %                             

544,352

Summers Ridge Science Park/San Diego/Sorrento Mesa(8)                                                        70.0  % (2)                         

316,531

1201 and 1208 Eastlake Avenue East and 199 East Blaine Street /Seattle/Lake
Union

                                                                                                        70.0  %                             

321,218

400 Dexter Avenue North/Seattle/Lake Union                                                                   70.0  %                             

290,754

800 Mercer Street/Seattle/Lake Union                                                                         40.0  % (2)                               -

Unconsolidated Real Estate Joint Ventures

                                                                                                                                              Operating RSF
                          Property/Market/Submarket                                          Our Ownership Share(9)                              at 100%
1655 and 1725 Third Street/San Francisco Bay Area/Mission Bay                                                10.0  %                                 

586,208

1401/1413 Research Boulevard/Maryland/Rockville                                                              65.0  % (10)                               

(11)

1450 Research Boulevard/Maryland/Rockville                                                                   73.2  % (12)                         

42,679

101 West Dickman Street/Maryland/Beltsville                                                                  57.9  % (12)                        

135,423

(1)In addition to the consolidated real estate joint ventures listed, various
partners hold insignificant noncontrolling interests in three other real estate
joint ventures in North America.
(2)Refer to the "Formation of consolidated real estate joint ventures and sales
of partial interests" section in Note 4 - "Consolidated and unconsolidated real
estate joint ventures" to our consolidated financial statements under Item 15 in
this annual report on Form 10-K for additional information.
(3)Represents a property currently under construction. Refer to "New Class A
development and redevelopment properties: current projects" under Item 2 in this
annual report on Form 10-K for additional details.
(4)Includes 409 and 499 Illinois Street, 1500 and 1700 Owens Street, and 455
Mission Bay Boulevard South.
(5)The noncontrolling interest share of our joint venture partner is anticipated
to increase to 75% as our partner contributes 100% of the remaining cost to
complete the project over time.
(6)Includes 10210, 10260, 10290, and 10300 Campus Point Drive and 4110, 4150,
4161, 4224, and 4242 Campus Point Court.
(7)Includes 9605, 9645, 9675, 9685, 9725, 9735, 9808, 9855, and 9868 Scranton
Road and 10055, 10065, and 10075 Barnes Canyon Road.
(8)Includes 9965, 9975, 9985, and 9995 Summers Ridge Road.
(9)In addition to the unconsolidated real estate joint ventures listed, we hold
an interest in one other insignificant unconsolidated real estate joint venture
in North America.
(10)Represents our ownership interest; our voting interest is limited to 50%.
(11)Represents a joint venture with a distinguished retail real estate developer
for a retail shopping center aggregating 84,837 RSF.
(12)Represents a joint venture with a local real estate operator in which our
partner manages the day-to-day activities that significantly affect the economic
performance of the joint venture.

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The following table presents key terms related to our unconsolidated real estate
joint ventures' secured loans as of December 31, 2022 (dollars in thousands):

                                                                                                                                            At 100%
                                                                                                             Interest            Aggregate              Debt

     Unconsolidated Joint Venture                     Maturity Date        

         Stated Rate             Rate(1)             Commitment          Balance(2)          Our Share
1401/1413 Research Boulevard                             12/23/24                       2.70%                    3.33  %       $    28,500          $   28,146             65.0%
1655 and 1725 Third Street                                3/10/25                       4.50%                    4.57  %           600,000             599,081             10.0%
101 West Dickman Street                                  11/10/26                    SOFR+1.95%     (3)          6.38  %            26,750              11,575             57.9%
1450 Research Boulevard                                  12/10/26                    SOFR+1.95%     (3)          6.44  %            13,000               3,802             73.2%
                                                                                                                               $   668,250          $  642,604

(1)Includes interest expense and amortization of loan fees.
(2)Represents outstanding principal, net of unamortized deferred financing
costs, as of December 31, 2022.
(3)This loan is subject to a fixed SOFR floor rate of 0.75%.

The following tables present information related to the operating results and
financial positions of our consolidated and unconsolidated real estate joint
ventures (in thousands):

                                        Noncontrolling Interest Share of                  Our Share of Unconsolidated
                                     Consolidated Real Estate Joint Ventures              Real Estate Joint Ventures
                                                December 31, 2022                              December 31, 2022
                                                                                      Three Months
                                    Three Months Ended          Year Ended               Ended                Year Ended
Total revenues                      $       102,013          $     366,794          $       2,689          $      11,130
Rental operations                           (31,176)              (109,358)                  (753)                (3,197)
                                             70,837                257,436                  1,936                  7,933
General and administrative                     (372)                (1,594)                   (10)                  (106)
Interest                                        (15)                   (15)                  (772)                (3,516)
Depreciation and amortization of            (29,702)              (107,591)                  (982)                (3,666)
real estate assets
Fixed returns allocated to
redeemable noncontrolling
interests(1)                                    201                    805                      -                      -
                                    $        40,949          $     149,041          $         172          $         645
Straight-line rent and below-market
lease revenue                       $         3,858          $      15,776          $         274          $       1,136
Funds from operations(2)            $        70,651          $     256,632          $       1,154          $       4,311


(1)Represents an allocation of joint venture earnings to redeemable
noncontrolling interests primarily in one property in our South San Francisco
submarket. These redeemable noncontrolling interests earn a fixed return on
their investment rather than participate in the operating results of the
property.
(2)Refer to the definition of "Funds from operations and funds from operations,
as adjusted, attributable to Alexandria Real Estate Equities, Inc.'s common
stockholders" in the "Non-GAAP measures and definitions" section within this
Item 7 in this annual report on Form 10-K for the definition and its
reconciliation from the most directly comparable financial measure presented in
accordance with GAAP.

                                                                As of December 31, 2022
                                                       Noncontrolling
                                                     Interest Share of             Our Share of
                                                     Consolidated Real            Unconsolidated
                                                        Estate Joint             Real Estate Joint
                                                          Ventures                   Ventures
Investments in real estate                          $       3,392,839          $          114,664
Cash, cash equivalents, and restricted cash                   129,186                       4,729
Other assets                                                  386,667                      11,346
Secured notes payable                                         (14,599)                    (87,694)
Other liabilities                                            (183,233)                     (4,610)
Redeemable noncontrolling interests                            (9,612)                          -
                                                    $       3,701,248          $           38,435



During the years ended December 31, 2022 and 2021, our consolidated real estate
joint ventures distributed an aggregate of $192.2 million and $112.4 million,
respectively, to our joint venture partners. Refer to our consolidated
statements of cash flows and Note 4 - "Consolidated and unconsolidated real
estate joint ventures" to our consolidated financial statements under Item 15 in
this annual report on Form 10-K for additional information.
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Investments

We hold strategic investments in publicly traded companies and privately held
entities primarily involved in the life science, agtech, and technology
industries. The tables below summarize components of our non-real estate
investments and investment income. Refer to Note 7 - "Investments" to our
consolidated financial statements under Item 15 in this annual report on Form
10-K for additional information.

                                                                 December 31, 2022
                                                                                                            Year Ended December 31,
(In thousands)                                     Three Months Ended              Year Ended                        2021
Realized gains                                   $      4,464    (1)          $    80,435    (1)          $         215,845    (2)
Unrealized (losses) gains                             (24,117)                   (412,193)                           43,632
Investment (loss) income                         $    (19,653)                $  (331,758)                $         259,477



Investments                                                                                 Unrealized
(In thousands)                                 Cost              Unrealized Gains             Losses                    Carrying Amount
Publicly traded companies                 $   210,986          $          96,271          $   (100,118)               $        207,139
Entities that report NAV                      452,391                    315,071                (7,710)                        759,752
Entities that do not report NAV:
Entities with observable price
changes                                       100,296                     95,062                (1,574)                        193,784
Entities without observable price
changes                                       388,940                          -                     -                         388,940
Investments accounted for under the
equity method of accounting                          N/A                        N/A                   N/A                       65,459
December 31, 2022                         $ 1,152,613    (3)   $         506,404          $   (109,402)               $      1,615,074

December 31, 2021                         $ 1,007,303          $         830,863          $    (33,190)               $      1,876,564



(1)For the three months and year ended December 31, 2022, includes impairments
aggregating $20.5 million primarily related to three non-real estate investments
in privately held entities that do not report NAV.
(2)Includes six separate significant realized gains aggregating $110.1 million
related to the following transactions: (i) the sales of investments in three
publicly traded biotechnology companies, (ii) a distribution received from a
limited partnership investment, and (iii) the acquisition of two of our
privately held non-real estate investments in a biopharmaceutical company and a
biotechnology company.
(3)Represents 2.9% of gross assets as of December 31, 2022.



                Public/Private
                  Mix (Cost)
    [[Image Removed: are-20221231_g64.jpg]]

               Tenant/Non-Tenant
                  Mix (Cost)
    [[Image Removed: are-20221231_g65.jpg]]


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Liquidity

                                                                                 Minimal Outstanding Borrowings and Significant Availability on Unsecured Senior
                       Liquidity                                                                                  Line of Credit
                                                               (in millions)


                         $5.3B



(In millions)
Availability under our unsecured senior line
of credit, net of amounts outstanding under                                                          [[Image Removed: are-20221231_g66.jpg]]
our commercial paper program                  $ 4,000
Outstanding forward equity sales
agreements(1)                                     102

Cash, cash equivalents, and restricted cash 858
Remaining construction loan commitments

           136

Investments in publicly traded companies 207
Liquidity as of December 31, 2022

             $ 5,303

(1)Represents expected net proceeds from the future settlement of 0.7 million
shares under forward equity sales agreements after underwriter discounts.

We expect to meet certain long-term liquidity requirements, such as requirements
for development, redevelopment, other construction projects, capital
improvements, tenant improvements, property acquisitions, leasing costs,
non-revenue-enhancing capital expenditures, scheduled debt maturities,
distributions to noncontrolling interests, and payment of dividends, through net
cash provided by operating activities, periodic asset sales, strategic real
estate joint ventures, long-term secured and unsecured indebtedness, borrowings
under our unsecured senior line of credit, issuances under our commercial paper
program, and issuances of additional debt and/or equity securities.

We also expect to continue meeting our short-term liquidity and capital
requirements, as further detailed in this section, generally through our working
capital and net cash provided by operating activities. We believe that the net
cash provided by operating activities will continue to be sufficient to enable
us to make the distributions necessary to continue qualifying as a REIT.

For additional information on our liquidity requirements related to our
contractual obligations and commitments, refer to Note 5 - "Leases" and Note 10
- "Secured and unsecured senior debt" to our consolidated financial statements
under Item 15 in this annual report on Form 10-K.

Over the next several years, our balance sheet, capital structure, and liquidity
objectives are as follows:

•Retain positive cash flows from operating activities after payment of dividends
and distributions to noncontrolling interests for investment in development and
redevelopment projects and/or acquisitions.
•Improve credit profile and relative long-term cost of capital.
•Maintain diverse sources of capital, including sources from net cash provided
by operating activities, unsecured debt, secured debt, selective real estate
asset sales, strategic real estate joint ventures, non-real estate investment
sales, and common stock.
•Maintain commitment to long-term capital to fund growth.
•Maintain prudent laddering of debt maturities.
•Maintain solid credit metrics.
•Maintain significant balance sheet liquidity.
•Prudently manage variable-rate debt exposure through the reduction of
short-term and medium-term variable-rate debt.
•Maintain a large unencumbered asset pool to provide financial flexibility.
•Fund common stock dividends and distributions to noncontrolling interests from
net cash provided by operating activities.
•Manage a disciplined level of value-creation projects as a percentage of our
gross real estate assets.
•Maintain high levels of pre-leasing and percentage leased in value-creation
projects.

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The following table presents the availability under our unsecured senior line of
credit, net of amounts outstanding under our commercial paper program;
outstanding forward equity sales agreements; cash, cash equivalents, and
restricted cash; availability under our secured construction loan; and
investments in publicly traded companies as of December 31, 2022 (dollars in
thousands):

                                                         Stated               Aggregate            Outstanding                 Remaining
                Description                               Rate               Commitments           Balance(1)            Commitments/Liquidity
Availability under our unsecured senior line
of credit, net of amounts outstanding under
our commercial paper program                          SOFR+0.875%           $ 4,000,000          $          -          $             4,000,000
Outstanding forward equity sales
agreements(2)                                                                                                                          102,427
Cash, cash equivalents, and restricted cash                                                                                            857,975
Remaining construction loan commitments                SOFR+2.70%           $   195,300          $     58,396                          135,583
Investments in publicly traded companies                                                                                               207,139
Liquidity as of December 31, 2022                                                                                      $             5,303,124



(1)Represents outstanding principal, net of unamortized deferred financing
costs, as of December 31, 2022.
(2)Represents expected net proceeds from the future settlement of 0.7 million
shares under forward equity sales agreements after underwriter discounts.

Cash, cash equivalents, and restricted cash

As of December 31, 2022 and 2021, we had $858.0 million and $415.2 million,
respectively, of cash, cash equivalents, and restricted cash. We expect existing
cash, cash equivalents, and restricted cash, net cash provided by operating
activities, proceeds from real estate asset sales, partial interest sales,
strategic real estate joint ventures, non-real estate investment sales,
borrowings under our unsecured senior line of credit, issuances under our
commercial paper program, issuances of unsecured senior notes payable,
borrowings under our secured construction loans, and issuances of common stock
to continue to be sufficient to fund our operating activities and cash
commitments for investing and financing activities, such as regular quarterly
dividends, distributions to noncontrolling interests, scheduled debt repayments,
acquisitions, and certain capital expenditures, including expenditures related
to construction activities.

Cash flows

We report and analyze our cash flows based on operating activities, investing
activities, and financing activities. The following table summarizes changes in
our cash flows for the years ended December 31, 2022 and 2021 (in thousands):

                                                 Year Ended December 31,
                                                  2022              2021             Change

Net cash provided by operating activities $ 1,294,321 $ 1,010,197

      $    284,124
Net cash used in investing activities        $ (5,080,458)     $ (7,107,324)     $  2,026,866
Net cash provided by financing activities    $  4,229,772      $  5,916,361      $ (1,686,589)



Operating activities

Cash flows provided by operating activities are primarily dependent upon the
occupancy level of our asset base, the rental rates of our leases, the
collectibility of rent and recovery of operating expenses from our tenants, the
timing of completion of development and redevelopment projects, and the timing
of acquisitions and dispositions of operating properties. Net cash provided by
operating activities for the year ended December 31, 2022 increased by $284.1
million to $1.3 billion, compared to $1.0 billion for the year ended December
31, 2021. The increase was primarily attributable to the following since
January 1, 2021: (i) cash flows generated from our highly leased development and
redevelopment projects recently placed into service, (ii) income-producing
acquisitions, and (iii) increases in rental rates on lease renewals and
re-leasing of space.

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Investing activities

Cash used in investing activities for the years ended December 31, 2022 and 2021
consisted of the following (in thousands):

                                                              Year Ended December 31,
                                                                                                       Increase
                                                             2022                  2021               (Decrease)
Sources of cash from investing activities:
Proceeds from sales of real estate                      $    994,331          $   190,576          $     803,755
Change in escrow deposits                                    155,968                    -                155,968

Return of capital from unconsolidated real estate joint
ventures

                                                         471                    -                    471

Sale of interests in unconsolidated real estate joint
ventures

                                                           -              394,952               (394,952)
Sales of and distributions from non-real estate
investments                                                  198,320              424,623               (226,303)
                                                           1,349,090            1,010,151                338,939
Uses of cash for investing activities:
Purchases of real estate                                   2,877,861            5,434,652             (2,556,791)
Additions to real estate                                   3,307,313            2,089,849              1,217,464
Change in escrow deposits                                          -              161,696               (161,696)

Acquisition of interest in unconsolidated real estate
joint venture

                                                      -                9,048                 (9,048)
Investments in unconsolidated real estate joint
ventures                                                       1,442               13,666                (12,224)
Additions to non-real estate investments                     242,932              408,564               (165,632)
                                                           6,429,548            8,117,475             (1,687,927)

Net cash used in investing activities                   $  5,080,458        

$ 7,107,324 $ (2,026,866)

The decrease in net cash used in investing activities for the year ended
December 31, 2022 when compared to the year ended December 31, 2021 was
primarily due to a decreased use of cash for purchases of real estate and
increase in proceeds from dispositions of real estate, partially offset by
increased cash used for additions to real estate. Refer to Note 3 - "Investments
in real estate" to our consolidated financial statements under Item 15 in this
annual report on Form 10-K for further information.


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Financing activities

Cash flows provided by financing activities for the years ended December 31,
2022 and 2021 consisted of the following (in thousands):

                                                             Year Ended 

December 31,

                                                           2022                  2021                 Change
Borrowings from secured notes payable                 $     49,715          $     10,005          $     39,710
Repayments of borrowings from secured notes payable           (934)              (17,979)               17,045

Payment for the defeasance of secured notes payable (198,304)

            -              (198,304)
Proceeds from issuance of unsecured senior notes
payable                                                  1,793,318             1,743,716                49,602
Repayments of unsecured senior notes payable                     -              (650,000)              650,000
Premium paid for early extinguishment of debt                    -               (66,829)               66,829

Borrowings from unsecured senior line of credit 1,181,000

    3,521,000            (2,340,000)

Repayments of borrowings from unsecured senior line
of credit

                                               (1,181,000)           (3,521,000)            2,340,000
Proceeds from issuances under commercial paper
program                                                 14,641,500            30,951,300           (16,309,800)
Repayments of borrowings from commercial paper
program                                                (14,911,500)          (30,781,300)           15,869,800
Payments of loan fees                                      (35,612)              (18,938)              (16,674)
Changes related to debt                                  1,338,183             1,169,975               168,208

Contributions from and sales of noncontrolling
interests                                                1,542,347             2,026,486              (484,139)
Distributions to and purchases of noncontrolling
interests                                                 (192,171)             (118,891)              (73,280)
Proceeds from the issuance of common stock               2,346,444             3,529,097            (1,182,653)
Dividend payments                                         (757,742)             (655,968)             (101,774)

Taxes paid related to net settlement of equity awards (47,289)

      (34,338)              (12,951)
Net cash provided by financing activities             $  4,229,772          $  5,916,361          $ (1,686,589)



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Capital resources

We expect that our principal liquidity needs for the year ending December 31,
2023 will be satisfied by the following multiple sources of capital, as shown in
the table below. There can be no assurance that our sources and uses of capital
will not be materially higher or lower than these expectations.

Key Sources and Uses of Capital                                                 2023 Guidance
(In millions)                                                              Range                   Midpoint
Sources of capital:
Incremental debt                                                $   550     

$ 850 $ 700
Excess 2022 bond capital held as cash at December 31,
2022

                                                                300              300               300
Net cash provided by operating activities after dividends           350              400               375

Real estate dispositions, sales of partial interests, and
issuances of common equity

                                        1,400            2,400             1,900    (1)

Total sources of capital                                        $ 2,600          $ 3,950          $  3,275

Uses of capital:
Construction                                                    $ 2,400          $ 3,550          $  2,975
Acquisitions                                                        200              400               300

Total uses of capital                                           $ 2,600     

$ 3,950 $ 3,275

Incremental debt (included above):
Issuance of unsecured senior notes payable                      $   500          $ 1,000          $    750
Unsecured senior line of credit, commercial paper
program, and other                                                   50             (150)              (50)
Incremental debt                                                $   550          $   850          $    700



(1)Refer to Note 15 - "Stockholders' equity" to our consolidated financial
statements under Item 15 in this annual report on Form 10-K for additional
details. During the three months ended December 31, 2022, we entered into new
forward equity sales agreements aggregating $104.7 million to sell 699,274
shares under our ATM program at an average price of $149.68 per share (before
underwriter discounts). We expect to settle these forward equity sales
agreements in 2023 and establish a new ATM program during the first quarter of
2023.


The key assumptions behind the sources and uses of capital in the table above
include a favorable capital market environment, performance of our core
operating properties, lease-up and delivery of current and future development
and redevelopment projects, and leasing activity. Our expected sources and uses
of capital are subject to a number of variables and uncertainties, including
those discussed as "Forward-looking statements" under Part I; "Item 1A. Risk
factors"; and "Item 7. Management's discussion and analysis of financial
condition and results of operations" in this annual report on Form 10-K. We
expect to update our forecast of key sources and uses of capital on a quarterly
basis.

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Sources of capital

Net cash provided by operating activities after dividends

We expect to retain $350.0 million to $400.0 million of net cash flows from
operating activities after payment of common stock dividends and distributions
to noncontrolling interests for the year ending December 31, 2023. For purposes
of this calculation, changes in operating assets and liabilities are excluded as
they represent timing differences. For the year ending December 31, 2023, we
expect our recently delivered projects, our highly pre-leased value-creation
projects expected to be delivered, and contributions from Same Properties and
recently acquired properties to contribute significant increases in income from
rentals, net operating income, and cash flows. We anticipate significant
contractual near-term growth in annual cash rents of $57 million related to the
commencement of contractual rents on the projects recently placed into service
that are near the end of their initial free rent period. Refer to "Cash flows"
within this Item 7 in this annual report on Form 10-K for a discussion of cash
flows provided by operating activities for the year ended December 31, 2022.

Debt

We expect to fund a portion of our capital needs in 2023 from real estate
dispositions, sales of partial interests, strategic real estate joint ventures,
settlement of our outstanding forward equity sales agreements, cash on hand,
issuances under our commercial paper program, borrowings under our unsecured
senior line of credit, and borrowings under our secured construction loans.

In September 2022, we amended our unsecured senior line of credit to extend the
maturity date to January 22, 2028 from January 6, 2026, increase the commitments
to $4.0 billion from $3.0 billion, and convert the interest rate to SOFR plus
0.875% from LIBOR plus 0.815%. As of December 31, 2022, we had no outstanding
balance on our unsecured senior line of credit. In addition to the cost of
borrowing, the unsecured senior line of credit is subject to an annual facility
fee of 0.15% based on the aggregate commitments outstanding. Based upon our
ability to achieve certain annual sustainability targets, the interest rate and
facility fee rate are also subject to upward or downward adjustments of up to
four basis points with respect to the interest rate and up to one basis point
with respect to the facility fee.

In September 2022, we increased the aggregate amount we may issue from time to
time under our commercial paper program to $2.0 billion from $1.5 billion.
Commercial notes under our commercial paper program can have a maximum maturity
of 397 days from the date of issuance and are generally issued with a maturity
of 30 days or less. Our commercial paper program is backed by our unsecured
senior line of credit, and at all times we expect to retain a minimum undrawn
amount of borrowing capacity under our unsecured senior line of credit equal to
any outstanding balance under our commercial paper program. We use borrowings
under the program to fund short-term capital needs. The notes issued under our
commercial paper program are sold under customary terms in the commercial paper
market. They are typically issued at a discount to par, representing a yield to
maturity dictated by market conditions at the time of issuance. In the event we
are unable to issue commercial paper notes or refinance outstanding commercial
paper notes under terms equal to or more favorable than those under the
unsecured senior line of credit, we expect to borrow under the unsecured senior
line of credit at SOFR plus 0.875%. The commercial paper notes sold during the
year ended December 31, 2022 were issued at a weighted-average yield to maturity
of 1.91%. As of December 31, 2022, we had no outstanding balance under our
commercial paper program.

In February 2022, we issued $1.8 billion of unsecured senior notes payable with
a weighted-average interest rate of 3.28% and a weighted-average maturity of
22.0 years. The unsecured senior notes consisted of $800.0 million of 2.95%
green unsecured senior notes due 2034 and $1.0 billion of 3.55% unsecured senior
notes due 2052.

In April 2022, we repaid two secured notes payable aggregating $195.0 million
due in 2024 with an effective interest rate of 3.40% and recognized a loss on
early extinguishment of debt of $3.3 million, including a prepayment penalty and
the write-off of unamortized loan fees.


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The following table provides our average debt outstanding and weighted-average
interest rate during the year ended December 31, 2022:

Year Ended December 31, 2022

                                                                  Average 

Debt

                                                                  Outstanding           Weighted-Average Interest Rate
Long-term fixed-rate debt                                      $     9,999,145                                 3.50  %

Short-term variable-rate unsecured senior line of credit
and commercial paper program debt

                                      564,649                                 1.72
Blended average interest rate                                  $    10,563,794                                 3.40

Loan fee amortization and annual facility fee related to
unsecured senior line of credit

  N/A                              0.11
Total/weighted average                                         $    10,563,794                                 3.51  %

Proactive management of transition from LIBOR

LIBOR has been used extensively in the U.S. and globally as a reference rate for
various commercial and financial contracts, including variable-rate debt and
interest rate swap contracts. However, based on an announcement made by the
Financial Conduct Authority on March 5, 2021, one-week and two-month LIBOR rates
ceased to be published after December 31, 2021; all other LIBOR settings will
effectively cease after June 30, 2023, and it is expected that LIBOR will no
longer be used after this date. In connection with this change, in the U.S. the
Alternative Reference Rates Committee ("ARRC") was established to help ensure
the successful transition from LIBOR. In June 2017, the ARRC selected SOFR, a
new index calculated by reference to short-term repurchase agreements backed by
U.S. Treasury securities, as its preferred replacement for U.S. dollar LIBOR. We
have been closely monitoring developments related to the transition from LIBOR
and have implemented numerous proactive measures to eliminate the potential
transition-related impacts to the Company, specifically:

•Since January 2017, we have proactively eliminated outstanding LIBOR-based
borrowings, and as of December 31, 2022, we had no LIBOR-based debt or financial
contracts, including through our consolidated and unconsolidated real estate
joint ventures.
•From 2020 through December 31, 2022, we increased the aggregate amount
available under our commercial paper program to $2.0 billion from $750.0
million. Our commercial paper program is not subject to LIBOR and is used for
funding short-term working capital needs. This program provides us with the
ability to issue commercial paper notes bearing interest at short-term fixed
rates with a maturity of generally 30 days or less and a maximum maturity of 397
days from the date of issuance. As of December 31, 2022, we had no commercial
paper notes outstanding.
•In September 2022, we amended our unsecured senior line of credit to convert
its interest rate to SOFR, among other changes. As of December 31, 2022, we had
no borrowings outstanding under our unsecured senior line of credit.

Refer to Note 10 - "Secured and unsecured senior debt" to our consolidated
financial statements under Item 15 and "Item 1A. Risk factors" in this annual
report on Form 10-K for additional information about our management of risks
related to the transition from LIBOR.

Real estate dispositions, sales of partial interests, and issuances of common
equity

We expect to continue the disciplined execution of select sales of operating
assets. Future sales will provide an important source of capital to fund a
portion of pending and recently completed opportunistic acquisitions and our
highly leased value-creation development and redevelopment projects, and also
provide significant capital for growth. We may also consider additional sales of
partial interests in core Class A properties and/or development projects. For
2023, we expect real estate dispositions, sales of partial interests, and
issuances of common equity ranging from $1.4 billion to $2.4 billion. The amount
of asset sales necessary to meet our forecasted sources of capital will vary
depending upon the amount of Adjusted EBITDA associated with the assets sold.

Refer to Note 3 - "Investment in real estate", Note 4 - "Consolidated and
unconsolidated real estate joint ventures", and Note 15 - "Stockholders' equity"
to our consolidated financial statements under Item 15 and "Dispositions and
sales of partial interests" under Item 2 in this annual report on Form 10-K for
additional information on our dispositions, sales of partial interests, and
issuances of common equity.

As a REIT, we are generally subject to a 100% tax on the net income from real
estate asset sales that the IRS characterizes as "prohibited transactions." We
do not expect our sales will be categorized as prohibited transactions. However,
unless we meet certain "safe harbor" requirements, whether a real estate asset
sale is a prohibited transaction will be based on the facts and circumstances of
the sale. Our real estate asset sales may not always meet such safe harbor
requirements. Refer to "Item 1A. Risk factors" in this annual report on Form
10-K for additional information about the "prohibited transaction" tax.

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Common equity transactions

During the year ended December 31, 2022, our common equity transactions included
the following:

•In January 2022, we entered into new forward equity sales agreements
aggregating $1.7 billion to sell 8.1 million shares of our common stock
(including the exercise of an underwriters' option) at a public offering price
of $210.00 per share, before underwriting discounts and commissions.
•During the year ended December 31, 2022, we settled all of our outstanding
forward equity sales agreements by issuing 8.1 million shares and received net
proceeds of $1.6 billion.

•In December 2021, we entered into a new ATM common stock offering program,
which allows us to sell up to an aggregate of $1.0 billion of our common stock.
•During the year ended December 31, 2022, we entered into new forward equity
sales agreements aggregating $858.1 million to sell 4.9 million shares under our
ATM program at an average price of $175.12 per share (before underwriting
discounts).
•During the three months ended December 31, 2022, we settled a portion of our
outstanding forward equity agreements by issuing 4.2 million shares and received
net proceeds of $737.4 million.
•We expect to settle the remaining outstanding forward equity agreements by
issuing 699,274 shares and receive net proceeds of approximately $102.4 million
in 2023.
•As of December 31, 2022, the remaining aggregate amount available under our ATM
program for future sales of common stock was $141.9 million. We expect to
establish a new ATM program during the first quarter of 2023.

Other sources

Under our current shelf registration statement filed with the SEC, we may issue
common stock, preferred stock, debt, and other securities. These securities may
be issued, from time to time, at our discretion based on our needs and market
conditions, including, as necessary, to balance our use of incremental debt
capital.

Additionally, we, together with joint venture partners, hold interests in real
estate joint ventures that we consolidate in our financial statements. These
existing joint ventures provide significant equity capital to fund a portion of
our future construction spend, and our joint venture partners may also
contribute equity into these entities for financing-related activities. Over the
next four years, we expect to receive $1.4 billion from our existing real estate
joint venture partners to fund construction projects. For 2023, we expect
contributions from noncontrolling interests to aggregate $794.0 million,
approximately 55% of which represents funding commitments from our existing real
estate joint ventures and the remaining amount of which represents funding
expected from our future real estate joint ventures. During the year ended
December 31, 2022, we received $1.5 billion of contributions from and sales of
noncontrolling interests.
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Uses of capital

Summary of capital expenditures

One of our primary uses of capital relates to the development, redevelopment,
pre-construction, and construction of properties. We currently have projects in
our value-creation pipeline aggregating 5.6 million RSF of Class A properties
undergoing construction, 9.9 million RSF of near-term and intermediate-term
development and redevelopment projects, and 17.3 million SF of future
development projects in North America. We incur capitalized construction costs
related to development, redevelopment, pre-construction, and other construction
activities. We also incur additional capitalized project costs, including
interest, property taxes, insurance, and other costs directly related and
essential to the development, redevelopment, pre-construction, or construction
of a project, during periods when activities necessary to prepare an asset for
its intended use are in progress. Refer to "New Class A development and
redevelopment properties: current projects" under Item 2 in this annual report
on Form 10-K for more information on our capital expenditures.

We capitalize interest cost as a cost of the project only during the period in
which activities necessary to prepare an asset for its intended use are ongoing,
provided that expenditures for the asset have been made and interest cost has
been incurred. Capitalized interest for the years ended December 31, 2022 and
2021 of $278.6 million and $170.6 million, respectively, was classified in
investments in real estate in our consolidated balance sheets.

Property taxes, insurance on real estate, and indirect project costs, such as
construction administration, legal fees, and office costs that clearly relate to
projects under development or construction, are capitalized as incurred during
the period an asset is undergoing activities to prepare it for its intended use.
We capitalized payroll and other indirect costs related to development,
redevelopment, pre-construction, and construction projects, aggregating $83.8
million and $69.8 million, and property taxes, insurance on real estate and
indirect project costs aggregating $97.3 million and $73.8 million during the
years ended December 31, 2022 and 2021, respectively.

The increase in capitalized costs for the year ended December 31, 2022, compared
to the year ended December 31, 2021, was primarily due to an increase in our
value-creation pipeline projects undergoing construction and pre-construction
activities in 2022 over 2021. Pre-construction activities include entitlements,
permitting, design, site work, and other activities preceding commencement of
construction of aboveground building improvements. The advancement of
pre-construction efforts is focused on reducing the time required to deliver
projects to prospective tenants. These critical activities add significant value
for future ground-up development and are required for the vertical construction
of buildings. Should we cease activities necessary to prepare an asset for its
intended use, the interest, taxes, insurance, and certain other direct and
indirect project costs related to the asset would be expensed as incurred.
Expenditures for repairs and maintenance are expensed as incurred.

Fluctuations in our development, redevelopment, and construction activities
could result in significant changes to total expenses and net income. For
example, had we experienced a 10% reduction in development, redevelopment, and
construction activities without a corresponding decrease in indirect project
costs, including interest and payroll, total expenses would have increased by
approximately $36.2 million for the year ended December 31, 2022.

We use third-party brokers to assist in our leasing activity, who are paid on a
contingent basis upon successful leasing. We are required to capitalize initial
direct costs related to successful leasing transactions that result directly
from and are essential to the lease transaction and would not have been incurred
had that lease transaction not been successfully executed. During the year ended
December 31, 2022, we capitalized total initial direct leasing costs of $186.7
million. Costs that we incur to negotiate or arrange a lease regardless of its
outcome, such as fixed employee compensation, tax, or legal advice to negotiate
lease terms, and other costs, are expensed as incurred.

Acquisitions

Refer to the "Acquisitions" section in Note 3 - "Investments in real estate" and
to Note 4 - "Consolidated and unconsolidated real estate joint ventures" to our
consolidated financial statements under Item 15 in this annual report on Form
10-K, and the "Acquisitions" section in "Item 2. Properties" in this annual
report on Form 10-K for information on our acquisitions.

Dividends

During the years ended December 31, 2022 and 2021, we paid common stock
dividends of $757.7 million and $656.0 million, respectively. The increase of
$101.8 million in dividends paid on our common stock during the year ended
December 31, 2022, compared to the year ended December 31, 2021, was primarily
due to an increase in the number of common shares outstanding subsequent to
January 1, 2021 as a result of issuances of common stock under our ATM program
and settlement of forward equity sales agreements, and partially due to the
increase in the related dividends to $4.66 per common share paid during the year
ended December 31, 2022 from $4.42 per common share paid during the year ended
December 31, 2021.

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Secured notes payable

Secured notes payable as of December 31, 2022 consisted of three notes secured
by two properties. Our secured notes payable typically require monthly payments
of principal and interest and had a weighted-average interest rate of
approximately 6.75%. As of December 31, 2022, the total book value of our
investments in real estate securing debt was approximately $216.8 million. As of
December 31, 2022, our secured notes payable, including unamortized discounts
and deferred financing costs, comprised approximately $649 thousand and $58.4
million of fixed-rate debt and unhedged variable-rate debt, respectively.
Unsecured senior notes payable and unsecured senior line of credit

The requirements of, and our actual performance with respect to, the key
financial covenants under our unsecured senior notes payable as of December 31,
2022 were as follows:

            Covenant Ratios(1)                              Requirement                           December 31, 2022
Total Debt to Total Assets                       Less than or equal to 60%                               27%
Secured Debt to Total Assets                     Less than or equal to 40%                              0.2%

Consolidated EBITDA(2) to Interest Expense Greater than or equal to 1.5x

                          18.2x
Unencumbered Total Asset Value to
Unsecured Debt                                   Greater than or equal to 150%                          363%


(1)All covenant ratio titles utilize terms as defined in the respective debt
agreements.
(2)The calculation of consolidated EBITDA is based on the definitions contained
in our loan agreements and is not directly comparable to the computation of
EBITDA as described in Exchange Act Release No. 47226.

In addition, the terms of the indentures, among other things, limit the ability
of the Company, Alexandria Real Estate Equities, L.P., and the Company's
subsidiaries to (i) consummate a merger, or consolidate or sell all or
substantially all of the Company's assets, and (ii) incur certain secured or
unsecured indebtedness.

The requirements of, and our actual performance with respect to, the key
financial covenants under our unsecured senior line of credit as of December 31,
2022 were as follows:

           Covenant Ratios (1)                          Requirement                          December 31, 2022
Leverage Ratio                                  Less than or equal to 60.0%                  26.6%
Secured Debt Ratio                              Less than or equal to 45.0%                   0.1%
                                                Greater than or equal to
Fixed-Charge Coverage Ratio                     1.50x                                        4.34x
                                                Greater than or equal to
Unsecured Interest Coverage Ratio               1.75x                                        18.87x

(1)All covenant ratio titles utilize terms as defined in the credit agreement.

Estimated interest payments

Estimated interest payments on our fixed-rate debt are calculated based upon
contractual interest rates, including interest payment dates and scheduled
maturity dates. As of December 31, 2022, 99.4% of our debt was fixed-rate debt.
For additional information regarding our debt, refer to Note 10 - "Secured and
unsecured senior debt" to our consolidated financial statements under Item 15 in
this annual report on Form 10-K.

Ground lease obligations

Operating lease agreements

Ground lease obligations as of December 31, 2022, included leases for 40 of our
properties, which accounted for approximately 9% of our total number of
properties. Excluding one ground lease that expires in 2036 related to one
operating property with a net book value of $6.3 million as of December 31,
2022, our ground lease obligations have remaining lease terms ranging from
approximately 31 to 99 years, including available extension options that we are
reasonably certain to exercise.

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As of December 31, 2022, the remaining contractual payments under ground and
office lease agreements in which we are the lessee aggregated $870.1 million and
$34.1 million, respectively. We are required to recognize a right-of-use asset
and a related liability to account for our future obligations under operating
lease arrangements in which we are the lessee. The operating lease liability is
measured based on the present value of the remaining lease payments, including
payments during the term under our extension options that we are reasonably
certain to exercise. The right-of-use asset is equal to the corresponding
operating lease liability, adjusted for the initial direct leasing cost and any
other consideration exchanged with the landlord prior to the commencement of the
lease, as well as adjustments to reflect favorable or unfavorable terms of an
acquired lease when compared with market terms at the time of acquisition. As of
December 31, 2022, the present value of the remaining contractual payments,
aggregating $904.2 million, under our operating lease agreements, including our
extension options that we are reasonably certain to exercise, was $406.7
million, which was classified in accounts payable, accrued expenses, and other
liabilities in our consolidated balance sheets. As of December 31, 2022, the
weighted-average remaining lease term of operating leases in which we are the
lessee was approximately 42 years, and the weighted-average discount rate was
4.6%. Our corresponding operating lease right-of-use assets, adjusted for
initial direct leasing costs and other consideration exchanged with the landlord
prior to the commencement of the lease, aggregated $558.3 million. We classify
the right-of-use asset in other assets in our consolidated balance sheets. Refer
to the "Lease accounting" section in Note 2 - "Summary of significant accounting
policies" to our consolidated financial statements under Item 15 in this annual
report on Form 10-K for additional information.

Commitments

As of December 31, 2022, remaining aggregate costs under contract for the
construction of properties undergoing development, redevelopment, and
improvements under the terms of leases approximated $3.5 billion. In addition,
we may be required to incur construction costs associated with our future
development projects aggregating 643,331 RSF in our Greater Boston market
pursuant to an agreement whereby our counterparty may elect to execute future
lease agreements on mutually agreeable terms.

We expect payments for these obligations to occur over one to three years,
subject to capital planning adjustments from time to time. We may have the
ability to cease the construction of certain projects, which would result in the
reduction of our commitments. In addition, we have letters of credit and
performance obligations aggregating $22.4 million primarily related to
construction projects and an anticipated acquisition.

We are committed to funding approximately $415.4 million related to our non-real
estate investments. These funding commitments are primarily associated with our
investments in privately held entities that report NAV and expire at various
dates over the next 12 years, with a weighted-average expiration of 8.6 years as
of December 31, 2022.

Exposure to environmental liabilities

In connection with the acquisition of all of our properties, we have obtained
Phase I environmental assessments to ascertain the existence of any
environmental liabilities or other issues. The Phase I environmental assessments
of our properties have not revealed any environmental liabilities that we
believe would have a material adverse effect on our financial condition or
results of operations taken as a whole, nor are we aware of any material
environmental liabilities that have occurred since the Phase I environmental
assessments were completed. In addition, we carry pollution legal liability
insurance covering exposure to certain environmental losses at substantially all
of our properties.

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Foreign currency translation gains and losses

The following table presents the change in accumulated other comprehensive loss
attributable to Alexandria Real Estate Equities, Inc.'s stockholders during the
year ended December 31, 2022 due to the changes in the foreign exchange rates
for our real estate investments in Canada and Asia. We reclassify unrealized
foreign currency translation gains and losses into net income as we dispose of
these holdings.

(In thousands)                                              Total
Balance as of December 31, 2021                          $  (7,294)

Other comprehensive loss before reclassifications (13,518)
Net other comprehensive loss

                               (13,518)

Balance as of December 31, 2022                          $ (20,812)



Inflation


As of December 31, 2022, approximately 93% of our leases (on an annual rental
revenue basis) were triple net leases, which require tenants to pay
substantially all real estate taxes, insurance, utilities, repairs and
maintenance, common area expenses, and other operating expenses (including
increases thereto) in addition to base rent. Approximately 96% of our leases (on
an annual rental revenue basis) contained effective annual rent escalations that
were either fixed (generally ranging from 3.0% to 3.5%) or indexed based on a
consumer price index or other indices. Accordingly, we do not believe that our
cash flows or earnings from real estate operations are subject to significant
risks from inflation. A period of inflation, however, could cause an increase in
the cost of our variable-rate borrowings, including borrowings under our
unsecured senior line of credit and commercial paper program, issuances of
unsecured senior notes payable, and borrowings under our secured construction
loans, and secured loans held by our unconsolidated real estate joint ventures.

In addition, refer to "Item 1A. Risk factors" in this annual report on Form 10-K
for a discussion about risks that inflation directly or indirectly may pose to
our business.

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Issuer and guarantor subsidiary summarized financial information

Alexandria Real Estate Equities, Inc. (the "Issuer") has sold certain debt
securities registered under the Securities Act of 1933, as amended, that are
fully and unconditionally guaranteed by Alexandria Real Estate Equities, L.P.
(the "LP" or the "Guarantor Subsidiary"), an indirectly 100% owned subsidiary of
the Issuer. The Issuer's other subsidiaries, including, but not limited to, the
subsidiaries that own substantially all of its real estate (collectively, the
"Combined Non-Guarantor Subsidiaries"), will not provide a guarantee of such
securities, including the subsidiaries that are partially or 100% owned by the
LP. The following summarized financial information presents on a combined basis,
balance sheet information as of December 31, 2022 and 2021, and results of
operations and comprehensive income for the years ended December 31, 2022 and
2021 for the Issuer and the Guarantor Subsidiary. The information presented
below excludes eliminations necessary to arrive at the information on a
consolidated basis. In presenting the summarized financial statements, the
equity method of accounting has been applied to (i) the Issuer's interests in
the Guarantor Subsidiary, (ii) the Guarantor Subsidiary's interests in the
Combined Non-Guarantor Subsidiaries, and (iii) the Combined Non-Guarantor
Subsidiaries' interests in the Guarantor Subsidiary, where applicable, even
though all such subsidiaries meet the requirements to be consolidated under
GAAP. All assets and liabilities have been allocated to the Issuer and the
Guarantor Subsidiary generally based on legal entity ownership.

The following tables present combined summarized financial information as of
December 31, 2022 and 2021, and for the years ended December 31, 2022 and 2021,
for the Issuer and Guarantor Subsidiary. Amounts provided do not represent our
total consolidated amounts:

                                                                      December 31,
 (in thousands)                                                   2022             2021
 Assets:
 Cash, cash equivalents, and restricted cash                 $    465,707      $    78,856
 Other assets                                                     107,287          101,956
 Total assets                                                $    572,994      $   180,812

 Liabilities:
 Unsecured senior notes payable                              $ 10,100,717   

$ 8,316,678

 Unsecured senior line of credit and commercial paper                   -          269,990
 Other liabilities                                                466,369          401,721
 Total liabilities                                           $ 10,567,086      $ 8,988,389



                                                                       Year Ended December 31,
(in thousands)                                                        2022                  2021
Total revenues                                                  $      33,052          $    26,798
Total expenses                                                       (277,647)            (363,525)
Net loss                                                             (244,595)            (336,727)

Net income attributable to unvested restricted stock
awards

                                                                 (8,392)              (7,848)

Net loss attributable to Alexandria Real Estate Equities,
Inc.’s common stockholders

                                      $    

(252,987) $ (344,575)

As of December 31, 2022, 420 of our 432 properties were held indirectly by the
REIT's wholly owned consolidated subsidiary, Alexandria Real Estate Equities,
L.P.
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Critical accounting estimates

Our consolidated financial statements have been prepared in accordance with
GAAP. The preparation of these financial statements in conformity with GAAP
requires us to make estimates, judgments, and assumptions that affect the
reported amounts of assets, liabilities, revenues, and expenses. We base these
estimates, judgments, and assumptions on historical experience, current trends,
and various other factors that we believe to be reasonable under the
circumstances.

We continually evaluate the estimates, judgments, and assumptions we use to
prepare our consolidated financial statements. Changes in estimates, judgments,
or assumptions could affect our financial position and our results of
operations, which are used by our stockholders, potential investors, industry
analysts, and lenders in their evaluation of our performance.

Our critical accounting estimates are defined as accounting estimates or
assumptions made in accordance with GAAP, which involve a significant level of
estimation uncertainty or subjectivity and have had or are reasonably likely to
have a material impact on our financial condition or results of operations. Our
significant accounting policies, which utilize these critical accounting
estimates, are described in Note 2 - "Summary of significant accounting
policies" to our consolidated financial statements under Item 15 in this annual
report on Form 10-K. Our critical accounting estimates are described below.

Recognition of real estate acquired

Generally, our acquisitions of real estate or in-substance real estate are
accounted for as asset acquisitions and not business combinations because
substantially all of the fair value is concentrated in a single identifiable
asset or group of similar identifiable assets (i.e., land, buildings, and
related intangible assets). The accounting model for asset acquisitions requires
that the acquisition consideration (including acquisition costs) be allocated to
the individual assets acquired and liabilities assumed on a relative fair value
basis. Any excess (deficit) of the consideration transferred relative to the sum
of the fair value of the assets acquired and liabilities assumed is allocated to
the individual assets and liabilities based on their relative fair values.

We assess the relative fair values of tangible and intangible assets and
liabilities based on:

(i)Available comparable market information;
(ii)Estimated replacement costs; or
(iii)Discounted cash flow analysis/estimated net operating income and
capitalization rates.

In certain instances, we may use multiple valuation techniques and estimate fair
values based on an average of multiple valuation results. We exercise judgement
to determine key assumptions used in each valuation technique. For example, to
estimate future cash flows in the discounted cash flow analysis, we are required
to use judgment and make a number of assumptions, including those related to
projected growth in rental rates and operating expenses, and anticipated trends
and market/economic conditions. The use of different assumptions in the
discounted cash flow analysis can affect the amount of consideration allocated
to the acquired depreciable/amortizable asset, which in turn can impact our net
income due to the recognition of the related depreciation/amortization expense
in our consolidated statements of operations.

We completed acquisitions of 42 properties for a total purchase price of $2.8
billion during the year ended December 31, 2022. These transactions were
accounted for as asset acquisitions, and the purchase price of each was
allocated based on the relative fair values of the assets acquired and
liabilities assumed. Refer to the "Investments in real estate" section in Note 2
- "Summary of significant accounting policies" to our consolidated financial
statements under Item 15 in this annual report on Form 10-K for additional
information.

Impairment of long-lived assets

Impairment of real estate assets classified as held for sale

A property is classified as held for sale when all of the accounting criteria
for a plan of sale have been met. These criteria are described in the
"Investments in real estate" section in Note 2 - "Summary of significant
accounting policies" to our consolidated financial statements under Item 15 in
this annual report on Form 10-K. Upon classification as held for sale, we
recognize an impairment charge, if necessary, to lower the carrying amount of
the real estate asset to its estimated fair value less cost to sell. The
determination of fair value can involve significant judgments and assumptions.
We develop key assumptions based on the following available factors: (i)
contractual sales price, (ii) preliminary non-binding letters of intent, or
(iii) other available comparable market information. If this information is not
available, we use estimated replacement costs or estimated cash flow projections
that utilize estimated discount and capitalization rates. These estimates are
subject to uncertainty and therefore require significant judgment by us. We
review all assets held for sale each reporting period to determine whether the
existing carrying amounts are fully recoverable in comparison to their estimated
fair values less costs to sell. Subsequently, as a result of our quarterly
assessment, we may recognize an incremental impairment charge for any decrease
in the asset's fair value less cost to sell. Conversely, we may recognize a gain
for a subsequent increase in fair value less cost to sell, limited to the
cumulative net loss previously recognized.

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Impairment of other long-lived assets

For each reporting period, we review current activities and changes in the
business conditions of all of our long-lived assets, including our rental
properties, CIP, land held for development, right-of-use assets related to
operating leases in which we are the lessee, and intangibles, to determine the
existence of any triggering events or impairment indicators requiring an
impairment analysis. If triggering events or impairment indicators are
identified, we review an estimate of the future undiscounted cash flows,
including, if necessary, a probability-weighted approach if multiple outcomes
are under consideration.

Long-lived assets to be held and used, are individually evaluated for impairment
when conditions exist that may indicate that the carrying amount of a long-lived
asset may not be recoverable. The carrying amount of a long-lived asset to be
held and used is not recoverable if it exceeds the sum of the undiscounted cash
flows expected to result from the use and eventual disposition of the asset.
Triggering events or impairment indicators for long-lived assets to be held and
used, including our rental properties, CIP, land held for development, and
intangibles, are assessed by project and include significant fluctuations in
estimated net operating income, occupancy changes, significant near-term lease
expirations, current and historical operating and/or cash flow losses,
construction costs, estimated completion dates, rental rates, and other market
factors. We assess the expected undiscounted cash flows based upon numerous
factors, including, but not limited to, construction costs, available market
information, current and historical operating results, known trends, current
market/economic conditions that may affect the property, and our assumptions
about the use of the asset, including, if necessary, a probability-weighted
approach if multiple outcomes are under consideration.

Upon determination that an impairment has occurred, a write-down is recognized
to reduce the carrying amount to its estimated fair value. If an impairment loss
is not required to be recognized, the recognition of depreciation or
amortization is adjusted prospectively, as necessary, to reduce the carrying
amount of the real estate to its estimated disposition value over the remaining
period that the asset is expected to be held and used. We may also adjust
depreciation of properties that are expected to be disposed of or redeveloped
prior to the end of their useful lives.

The evaluation for impairment and calculation of the carrying amount of a
long-lived asset to be held and used involves consideration of factors and
calculations that are different than the estimate of fair value of assets
classified as held for sale. Because of these two different models, it is
possible for a long-lived asset previously classified as held and used to
require the recognition of an impairment charge upon classification as held for
sale.

Impairment of real estate joint ventures accounted for under the equity method
of accounting

We generally account for our investments in real estate joint ventures that do
not meet the consolidation criteria under the equity method. Under the equity
method of accounting, we initially recognize our investment at cost and
subsequently adjust the carrying amount of the investment for our share of the
investee's earnings or losses, distributions received, and other-than-temporary
impairments.

Our unconsolidated real estate joint ventures are individually evaluated for
impairment when conditions exist that may indicate that the decrease in the
carrying amount of our investment has occurred and is other than temporary.
Triggering events or impairment indicators for an unconsolidated joint venture
include its recurring operating losses, and other events such as occupancy
changes, significant near-term lease expirations, significant changes in
construction costs, estimated completion dates, rental rates, and other factors
related to the properties owned by the real estate joint venture, or a decision
by investors to cease providing support or reduce their financial commitment to
the joint venture.

Upon determination that an other-than-temporary impairment has occurred, a
write-down is recognized to reduce the carrying amount of our investment to its
estimated fair value. As of December 31, 2022, the carrying amounts of our
investments in unconsolidated real estate joint ventures aggregated
$38.4 million, or approximately 0.1% of our total assets. During the year ended
December 31, 2022, no other-than-temporary impairments related to our
unconsolidated real estate joint ventures were identified. Refer to the
"Unconsolidated real estate joint ventures" section in Note 4 - "Consolidated
and unconsolidated real estate joint ventures" to our consolidated financial
statements under Item 15 in this annual report on Form 10-K for additional
information.

Impairment of non-real estate investments

We hold strategic investments in publicly traded companies and privately held
entities primarily involved in the life science, agtech, and technology
industries. As a REIT, we generally limit our ownership percentage in the voting
stock of each individual entity to less than 10%.

Our investments in privately held entities that do not report NAV per share
require our evaluation for impairment when changes in these entities' conditions
may indicate that an impairment exists. We closely monitor these investments
throughout the year for new developments, including operating results, prospects
and results of clinical trials, new product initiatives, new collaborative
agreements, capital-raising events, and merger and acquisition activities. We
evaluate these investees on the basis of a qualitative assessment for indicators
of impairment by monitoring the presence of the following triggering events or
impairment indicators: (i) a significant deterioration in the earnings
performance, credit rating, asset quality, or business prospects of the
investee; (ii) a significant adverse
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change in the regulatory, economic, or technological environment of the
investee, (iii) a significant adverse change in the general market condition,
including the research and development of technology and products that the
investee is bringing or attempting to bring to the market, (iv) significant
concerns about the investee's ability to continue as a going concern, or (v) a
decision by investors to cease providing support to reduce their financial
commitment to the investee. If such indicators are present, we are required to
estimate the investment's fair value and immediately recognize an impairment
loss in an amount equal to the investment's carrying value in excess of its
estimated fair value. As of each December 31, 2022, 2021, and 2020, the carrying
amounts of our investments in privately held entities that do not report NAV per
share accounted for approximately 2% of our total assets and aggregated
$582.7 million, $491.3 million, and $389.2 million, respectively. During the
years ended December 31, 2022, 2021, and 2020, we recognized impairment charges
aggregating 4%, 0%, and 6% of the carrying amounts of our investments in
privately held entities that do not report NAV, respectively.

Monitoring of tenant credit quality

We monitor, on an ongoing basis, the credit quality and any related material
changes of our tenants by (i) monitoring the credit rating of tenants that are
rated by a nationally recognized credit rating agency, (ii) reviewing financial
statements of the tenants that are publicly available or that are required to be
delivered to us pursuant to the applicable lease, (iii) monitoring news reports
regarding our tenants and their respective businesses and industries in which
they conduct business, and (iv) monitoring the timeliness of lease payments.

We have a team of employees who, among them, have an extensive educational
background or experience in biology, chemistry, industrial biotechnology,
agtech, and the life science industry, as well as knowledge in finance. This
team is responsible for timely assessment, monitoring, and communication of our
tenants' credit quality and any material changes therein. During the fiscal
years ended 2022, 2021, and 2020, specific write-offs and a general allowance
related to deferred rent balances of tenants recognized in our consolidated
statements of operations have not exceeded 0.8% of our income from rentals for
each respective year. For additional information, refer to the "Monitoring of
tenant credit quality" section in Note 2 - "Summary of significant accounting
policies" to our consolidated financial statements under Item 15 in this annual
report on Form 10-K for additional information.

Allowance for credit losses

For the financial assets in scope of the accounting standard on credit losses,
we are required to estimate and recognize lifetime expected losses, rather than
incurred losses, which results in the earlier recognition of credit losses even
if the expected risk of credit loss is remote.

As of December 31, 2022, all of our 432 properties were subject to the operating
lease agreements, which are excluded from the scope of the standard on credit
losses. As of December 31, 2022, we had one direct financing lease agreement for
a parking structure with an aggregate net investment balance of $39.4 million,
which represented approximately 0.1% of our total assets. At each reporting
date, we estimate the current credit loss related to these assets by assessing
the probability of default on these leases based on the lessees' financial
condition, credit rating, business prospects, remaining lease term, and, in the
case of the direct financing lease, the expected value of the underlying
collateral upon its repossession, and, if necessary, we recognize a credit loss
adjustment. Since our adoption of this standard on January 1, 2020, and as of
each December 31, 2022 and 2021, our allowance for credit losses has not
exceeded $2.8 million, or 0.01% of our total assets. For further details, refer
to the "Allowance for credit losses" section in Note 2 - "Summary of significant
accounting policies" and to Note 5 - "Leases" to our consolidated financial
statements under Item 15 in this annual report on Form 10-K for additional
information.

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Non-GAAP measures and definitions

This section contains additional information of certain non-GAAP financial
measures and the reasons why we use these supplemental measures of performance
and believe they provide useful information to investors, as well as the
definitions of other terms used in this annual report on Form 10-K.

Funds from operations and funds from operations, as adjusted, attributable to
Alexandria Real Estate Equities, Inc.’s common stockholders

GAAP-basis accounting for real estate assets utilizes historical cost accounting
and assumes that real estate values diminish over time. In an effort to overcome
the difference between real estate values and historical cost accounting for
real estate assets, the Nareit Board of Governors established funds from
operations as an improved measurement tool. Since its introduction, funds from
operations has become a widely used non-GAAP financial measure among equity
REITs. We believe that funds from operations is helpful to investors as an
additional measure of the performance of an equity REIT. Moreover, we believe
that funds from operations, as adjusted, allows investors to compare our
performance to the performance of other real estate companies on a consistent
basis, without having to account for differences recognized because of real
estate acquisition and disposition decisions, financing decisions, capital
structure, capital market transactions, variances resulting from the volatility
of market conditions outside of our control, or other corporate activities that
may not be representative of the operating performance of our properties.

The 2018 White Paper published by the Nareit Board of Governors (the "Nareit
White Paper") defines funds from operations as net income (computed in
accordance with GAAP), excluding gains or losses on sales of real estate, and
impairments of real estate, plus depreciation and amortization of operating real
estate assets, and after adjustments for our share of consolidated and
unconsolidated partnerships and real estate joint ventures. Impairments
represent the write-down of assets when fair value over the recoverability
period is less than the carrying value due to changes in general market
conditions and do not necessarily reflect the operating performance of the
properties during the corresponding period.

We compute funds from operations, as adjusted, as funds from operations
calculated in accordance with the Nareit White Paper, excluding significant
gains, losses, and impairments realized on non-real estate investments,
unrealized gains or losses on non-real estate investments, gains or losses on
early extinguishment of debt, significant termination fees, acceleration of
stock compensation expense due to the resignation of an executive officer, deal
costs, the income tax effect related to such items, and the amount of such items
that is allocable to our unvested restricted stock awards. We compute the amount
that is allocable to our unvested restricted stock awards using the two-class
method. Under the two-class method, we allocate net income (after amounts
attributable to noncontrolling interests) to common stockholders and to unvested
restricted stock awards by applying the respective weighted-average shares
outstanding during each quarter-to-date and year-to-date period. This may result
in a difference of the summation of the quarter-to-date and year-to-date
amounts. Neither funds from operations nor funds from operations, as adjusted,
should be considered as alternatives to net income (determined in accordance
with GAAP) as indications of financial performance, or to cash flows from
operating activities (determined in accordance with GAAP) as measures of
liquidity, nor are they indicative of the availability of funds for our cash
needs, including our ability to make distributions.

The following table reconciles net income to funds from operations for the share
of consolidated real estate joint ventures attributable to noncontrolling
interests and our share of unconsolidated real estate joint ventures for the
three and twelve months ended December 31, 2022 (in thousands):

                                  Noncontrolling Interest Share of                    Our Share of Unconsolidated
                              Consolidated Real Estate Joint Ventures                 Real Estate Joint Ventures
                                         December 31, 2022                                 December 31, 2022
                                                                                 Three Months
                             Three Months Ended           Year Ended                 Ended                Year Ended
Net income                  $          40,949          $      149,041          $          172          $          645
Depreciation and                       29,702                 107,591                     982                   3,666
amortization of real estate
assets
Funds from operations       $          70,651          $      256,632          $        1,154          $        4,311







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The following tables present a reconciliation of net income (loss) attributable
to Alexandria Real Estate Equities, Inc.'s common stockholders, the most
directly comparable financial measure presented in accordance with GAAP,
including our share of amounts from consolidated and unconsolidated real estate
joint ventures, to funds from operations attributable to Alexandria Real Estate
Equities, Inc.'s common stockholders - diluted, and funds from operations
attributable to Alexandria Real Estate Equities, Inc.'s common stockholders -
diluted, as adjusted, and the related per share amounts for the years ended
December 31, 2022, 2021, and 2020. Per share amounts may not add due to
rounding.

                                                                        Year Ended December 31,
(In thousands)                                               2022                 2021                2020
Net income attributable to Alexandria Real Estate
Equities, Inc.'s common stockholders - basic and
diluted                                                 $   513,268          $   563,399          $  760,791
Depreciation and amortization of real estate assets         988,363              804,633             684,682

Noncontrolling share of depreciation and amortization
from consolidated real estate JVs

                          (107,591)             (70,880)            (61,933)
Our share of depreciation and amortization from
unconsolidated real estate JVs                                3,666               13,734              11,413
Gain on sales of real estate                               (537,918)            (126,570)           (154,089)
Impairment of real estate - rental properties                20,899    (1)        25,485              40,501
Allocation to unvested restricted stock awards               (1,118)              (6,315)             (7,018)

Funds from operations attributable to Alexandria Real
Estate Equities, Inc.’s common stockholders –
diluted(2)

                                                  879,569            1,203,486           1,274,347
Unrealized losses (gains) on non-real estate
investments                                                 412,193              (43,632)           (374,033)
Significant realized gains on non-real estate
investments                                                       -             (110,119)                  -
Impairment of non-real estate investments                    20,512    (3)             -              24,482
Impairment of real estate                                    44,070    (4)        27,190              15,221
Loss on early extinguishment of debt                          3,317               67,253              60,668
Termination fee                                                   -                    -             (86,179)
Acceleration of stock compensation expense due to
executive officer resignation                                 7,185    (5)             -               4,499
Allocation to unvested restricted stock awards               (5,137)                 710               4,790

Funds from operations attributable to Alexandria Real
Estate Equities, Inc.’s common stockholders – diluted,
as adjusted

                                             $ 1,361,709          $ 1,144,888          $  923,795



(1)Primarily consists of an impairment of one real estate asset recognized to
reduce the carrying amount of the asset to its estimated fair value, less cost
to sell, upon its classification as held for sale in December 2022. We expect to
complete the sale of this asset during 2023.
(2)Calculated in accordance with standards established by the Nareit Board of
Governors.
(3)Primarily relates to three investments in privately held entities that do not
report NAV.
(4)Includes (i) the write-off of pre-acquisition deposits primarily related to
one previously pending acquisition, which was recognized upon our decision not
to proceed with the acquisition, and (ii) a $38.3 million impairment charge
related to one future development, which we recognized upon our decision not to
proceed with the project.
(5)Relates to the resignation of Stephen A. Richardson, our former co-chief
executive officer, in July 2022.



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                                                                              Year Ended December 31,
(Per share)                                                          2022                 2021               2020

Net income per share attributable to Alexandria Real
Estate Equities, Inc.’s common stockholders – diluted $ 3.18

              $    3.82          $    6.01
Depreciation and amortization of real estate assets                 5.47                   5.07               5.01
Gain on sales of real estate                                       (3.33)                 (0.86)             (1.22)
Impairment of real estate - rental properties                       0.13        (1)        0.17               0.32
Allocation to unvested restricted stock awards                     (0.01)                 (0.04)             (0.05)
Funds from operations per share attributable to
Alexandria Real Estate Equities, Inc.'s common
stockholders - diluted                                              5.44                   8.16              10.07
Unrealized losses (gains) on non-real estate investments            2.55                  (0.30)             (2.96)
Significant realized gains on non-real estate
investments                                                            -                  (0.75)                 -
Impairment of non-real estate investments                           0.13        (1)           -               0.19
Impairment of real estate                                           0.27        (1)        0.18               0.12
Loss on early extinguishment of debt                                0.02                   0.46               0.48
Termination fee                                                        -                      -              (0.68)
Acceleration of stock compensation expense due to
executive officer resignation                                       0.04        (1)           -               0.04
Allocation to unvested restricted stock awards                     (0.03)                  0.01               0.04
Funds from operations per share attributable to
Alexandria Real Estate Equities, Inc.'s common
stockholders - diluted, as adjusted                            $    8.42    

$ 7.76 $ 7.30

Weighted-average shares of common stock outstanding for
calculations of:
EPS – diluted

                                                    161,659                147,460            126,490
Funds from operations - diluted, per share                       161,659                147,460            126,490

Funds from operations – diluted, as adjusted, per share 161,659

            147,460            126,490



(1)  Refer to footnotes on the previous page for additional details.
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Adjusted EBITDA and Adjusted EBITDA margin

We use Adjusted EBITDA as a supplemental performance measure of our operations,
for financial and operational decision-making, and as a supplemental means of
evaluating period-to-period comparisons on a consistent basis. Adjusted EBITDA
is calculated as earnings before interest, taxes, depreciation, and amortization
("EBITDA"), excluding stock compensation expense, gains or losses on early
extinguishment of debt, gains or losses on sales of real estate, impairments of
real estate, and significant termination fees. Adjusted EBITDA also excludes
unrealized gains or losses and significant realized gains or losses and
impairments that result from our non-real estate investments. These non-real
estate investment amounts are classified in our consolidated statements of
operations outside of total revenues.

We believe Adjusted EBITDA provides investors with relevant and useful
information as it allows investors to evaluate the operating performance of our
business activities without having to account for differences recognized because
of investing and financing decisions related to our real estate and non-real
estate investments, our capital structure, capital market transactions, and
variances resulting from the volatility of market conditions outside of our
control. For example, we exclude gains or losses on the early extinguishment of
debt to allow investors to measure our performance independent of our
indebtedness and capital structure. We believe that adjusting for the effects of
impairments and gains or losses on sales of real estate, significant impairments
and realized gains or losses on non-real estate investments, and significant
termination fees allows investors to evaluate performance from period to period
on a consistent basis without having to account for differences recognized
because of investing and financing decisions related to our real estate and
non-real estate investments or other corporate activities that may not be
representative of the operating performance of our properties.

In addition, we believe that excluding charges related to stock compensation and
unrealized gains or losses facilitates for investors a comparison of our
business activities across periods without the volatility resulting from market
forces outside of our control. Adjusted EBITDA has limitations as a measure of
our performance. Adjusted EBITDA does not reflect our historical expenditures or
future requirements for capital expenditures or contractual commitments. While
Adjusted EBITDA is a relevant measure of performance, it does not represent net
income (loss) or cash flows from operations calculated and presented in
accordance with GAAP, and it should not be considered as an alternative to those
indicators in evaluating performance or liquidity.

In order to calculate the Adjusted EBITDA margin, we divide Adjusted EBITDA by
total revenues as presented in our consolidated statements of operations. We
believe that this supplemental performance measure provides investors with
additional useful information regarding the profitability of our operating
activities.


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The following table reconciles net income (loss), the most directly comparable
financial measure calculated and presented in accordance with GAAP, to Adjusted
EBITDA and calculates the Adjusted EBITDA margin for the three months and years
ended December 31, 2022 and 2021 (dollars in thousands):

                                                Three Months Ended December 31,                 Year Ended December 31,
                                                   2022                   2021                 2022                  2021
Net income                                  $         95,268          $   99,796          $    670,701          $   654,282
Interest expense                                      17,522              34,862                94,203              142,165
Income taxes                                           2,063               4,156                 9,673               12,054
Depreciation and amortization                        264,480             239,254             1,002,146              821,061
Stock compensation expense                            11,586              14,253                57,740               48,669
Loss on early extinguishment of debt                       -                   -                 3,317               67,253
Gain on sales of real estate                               -            (124,226)             (537,918)            (126,570)
Significant realized gains on
non-real estate investments                                -                   -                     -             (110,119)
Unrealized losses (gains) on non-real
estate investments                                    24,117             139,716               412,193              (43,632)
Impairment of real estate                             26,186                   -                64,969               52,675
Impairment of non-real estate
investments                                           20,512                   -                20,512                    -
Adjusted EBITDA                             $        461,734          $  407,811          $  1,797,536          $ 1,517,838

Total revenues                              $        670,281          $  576,923          $  2,588,962          $ 2,114,150

Adjusted EBITDA margin                                      69%                 71%                   69%                  72%



Annual rental revenue

Annual rental revenue represents the annualized fixed base rental obligations,
calculated in accordance with GAAP, for leases in effect as of the end of the
period, related to our operating RSF. Annual rental revenue is presented using
100% of the annual rental revenue from our consolidated properties and our share
of annual rental revenue for our unconsolidated real estate joint ventures.
Annual rental revenue per RSF is computed by dividing annual rental revenue by
the sum of 100% of the RSF of our consolidated properties and our share of the
RSF of properties held in unconsolidated real estate joint ventures. As of
December 31, 2022, approximately 93% of our leases (on an annual rental revenue
basis) were triple net leases, which require tenants to pay substantially all
real estate taxes, insurance, utilities, repairs and maintenance, common area
expenses, and other operating expenses (including increases thereto) in addition
to base rent. Annual rental revenue excludes these operating expenses recovered
from our tenants. Amounts recovered from our tenants related to these operating
expenses, along with base rent, are classified in income from rentals in our
consolidated statements of operations.

Capitalization rates

Capitalization rates are calculated based on net operating income and net
operating income (cash basis) annualized for the quarter preceding the date on
which the property is sold, or near-term prospective net operating income.

Cash interest

Cash interest is equal to interest expense calculated in accordance with GAAP
plus capitalized interest, less amortization of loan fees and debt premiums
(discounts). Refer to the definition of "Fixed-charge coverage ratio" in this
section within this Item 7 in this annual report on 10-K for a reconciliation of
interest expense, the most directly comparable financial measure calculated and
presented in accordance with GAAP, to cash interest.

Class A properties and AAA locations

Class A properties are properties clustered in AAA locations that provide
innovative tenants with highly dynamic and collaborative environments that
enhance their ability to successfully recruit and retain world-class talent and
inspire productivity, efficiency, creativity, and success. Class A properties
generally command higher annual rental rates than other classes of similar
properties.

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AAA locations are in close proximity to concentrations of specialized skills,
knowledge, institutions, and related businesses. Such locations are generally
characterized by high barriers to entry for new landlords, high barriers to exit
for tenants, and a limited supply of available space.

Construction costs related to active development and redevelopment projects
under contract

Includes (i) costs incurred to date, (ii) remaining costs to complete under a
general contractor's guaranteed maximum price ("GMP") construction contract or
other fixed contracts, and (iii) our maximum committed tenant improvement
allowances under our executed leases. The general contractor's GMP contract or
other fixed contracts reduce our exposure to costs of construction materials,
labor, and services from third-party contractors and suppliers, unless the
overruns result from, among other things, a force majeure event or a change in
the scope of work covered by the contract.

Development, redevelopment, and pre-construction

A key component of our business model is our disciplined allocation of capital
to the development and redevelopment of new Class A properties, and property
enhancements identified during the underwriting of certain acquired properties,
located in collaborative life science, agtech, and technology campuses in AAA
innovation clusters. These projects are generally focused on providing
high-quality, generic, and reusable spaces that meet the real estate
requirements of, and are reusable by, a wide range of tenants. Upon completion,
each value-creation project is expected to generate a significant increase in
rental income, net operating income, and cash flows. Our development and
redevelopment projects are generally in locations that are highly desirable to
high-quality entities, which we believe results in higher occupancy levels,
longer lease terms, higher rental income, higher returns, and greater long-term
asset value.

Development projects generally consist of the ground-up development of generic
and reusable facilities. Redevelopment projects consist of the permanent change
in use of office, warehouse, and shell space into office/laboratory, agtech, or
tech office space. We generally will not commence new development projects for
aboveground construction of new Class A office/laboratory, agtech, and tech
office space without first securing significant pre-leasing for such space,
except when there is solid market demand for high-quality Class A properties.

Pre-construction activities include entitlements, permitting, design, site work,
and other activities preceding commencement of construction of aboveground
building improvements. The advancement of pre-construction efforts is focused on
reducing the time required to deliver projects to prospective tenants. These
critical activities add significant value for future ground-up development and
are required for the vertical construction of buildings. Ultimately, these
projects will provide high-quality facilities and are expected to generate
significant revenue and cash flows.

Development, redevelopment, and pre-construction spending also includes the
following costs: (i) amounts to bring certain acquired properties up to market
standard and/or other costs identified during the acquisition process (generally
within two years of acquisition) and (ii) permanent conversion of space for
highly flexible, move-in-ready office/laboratory space to foster the growth of
promising early- and growth-stage life science companies.

Revenue-enhancing and repositioning capital expenditures represent spending to
reposition or significantly change the use of a property, including through
improvement in the asset quality from Class B to Class A.

Non-revenue-enhancing capital expenditures represent costs required to maintain
the current revenues of a stabilized property, including the associated costs
for renewed and re-leased space.

Dividend payout ratio (common stock)

Dividend payout ratio (common stock) is the ratio of the absolute dollar amount
of dividends on our common stock (shares of common stock outstanding on the
respective record dates multiplied by the related dividend per share) to funds
from operations attributable to Alexandria's common stockholders - diluted, as
adjusted.

Dividend yield

Dividend yield for the quarter represents the annualized quarter dividend
divided by the closing common stock price at the end of the quarter.

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Fixed-charge coverage ratio

Fixed-charge coverage ratio is a non-GAAP financial measure representing the
ratio of Adjusted EBITDA to fixed charges. We believe that this ratio is useful
to investors as a supplemental measure of our ability to satisfy fixed financing
obligations and preferred stock dividends. Cash interest is equal to interest
expense calculated in accordance with GAAP plus capitalized interest, less
amortization of loan fees and debt premiums (discounts).

The following table reconciles interest expense, the most directly comparable
financial measure calculated and presented in accordance with GAAP, to cash
interest and fixed charges and computes the fixed-charge coverage ratio for the
three months and years ended December 31, 2022 and 2021 (dollars in thousands):
                                               Three Months Ended December 31,                 Year Ended December 31,
                                                  2022                   2021                 2022                  2021
Adjusted EBITDA                            $        461,734          $  407,811          $  1,797,536          $ 1,517,838

Interest expense                           $         17,522          $   34,862          $     94,203          $   142,165
Capitalized interest                                 79,491              44,078               278,645              170,641
Amortization of loan fees                            (3,975)             (2,911)              (13,549)             (11,441)
Amortization of debt (discounts)
premiums                                               (272)                502                  (384)               2,041
Cash interest and fixed charges            $         92,766          $   76,531          $    358,915          $   303,406

Fixed-charge coverage ratio:
- period annualized                                       5.0x                5.3x                  5.0x                 5.0x
- trailing 12 months                                      5.0x                5.0x                  5.0x                 5.0x



Gross assets

Gross assets are calculated as total assets plus accumulated depreciation as of
December 31, 2022 and 2021 (in thousands):

                                     December 31,
                                2022              2021
Total assets               $ 35,523,399      $ 30,219,373

Accumulated depreciation 4,354,063 3,771,241
Gross assets

               $ 39,877,462      $ 33,990,614

Initial stabilized yield (unlevered)

Initial stabilized yield is calculated as the estimated amounts of net operating
income at stabilization divided by our investment in the property. Our initial
stabilized yield excludes the benefit of leverage. Our cash rents related to our
value-creation projects are generally expected to increase over time due to
contractual annual rent escalations. Our estimates for initial stabilized
yields, initial stabilized yields (cash basis), and total costs at completion
represent our initial estimates at the commencement of the project. We expect to
update this information upon completion of the project, or sooner if there are
significant changes to the expected project yields or costs.
•Initial stabilized yield reflects rental income, including contractual rent
escalations and any rent concessions over the term(s) of the lease(s),
calculated on a straight-line basis.
•Initial stabilized yield (cash basis) reflects cash rents at the stabilization
date after initial rental concessions, if any, have elapsed and our total cash
investment in the property.

Investment-grade or publicly traded large cap tenants

Investment-grade or publicly traded large cap tenants represent tenants that are
investment-grade rated or publicly traded companies with an average daily market
capitalization greater than $10 billion for the twelve months ended December 31,
2022, as reported by Bloomberg Professional Services. Credit ratings from
Moody's Investors Service and S&P Global Ratings reflect credit ratings of the
tenant's parent entity, and there can be no assurance that a tenant's parent
entity will satisfy the tenant's lease obligation upon such tenant's default. We
monitor the credit quality and related material changes of our tenants. Material
changes that cause a tenant's market capitalization to decrease below $10
billion, which are not immediately reflected in the twelve-month average, may
result in their exclusion from this measure.

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Investments in real estate – value-creation square footage currently in rental
properties

The square footage presented in the table below includes RSF of buildings in
operation as of December 31, 2022, primarily representing lease expirations or
vacant space at recently acquired properties that also have inherent future
development or redevelopment opportunities and for which we have the intent to
demolish or redevelop the existing property upon expiration of the existing
in-place leases and commencement of future construction:
                                                                                                                       RSF of Lease Expirations Targeted for
                                                                                                                           Development and Redevelopment
Property/Submarket                                              Dev/Redev                2023                      2024                        Thereafter(1)                        Total
Near-term projects:
100 Edwin H. Land Boulevard/Cambridge/Inner Suburbs               Redev                       -                    104,500                                 -                          104,500
40 Sylvan Road/Route 128                                          Redev                 312,845                          -                                 -                          312,845
275 Grove Street/Route 128                                        Redev                       -                          -                           160,251                          160,251
840 Winter Street/Route 128                                       Redev                  10,265                     17,965                                 -                           28,230
3301 Monte Villa Parkway/Bothell                                  Redev                       -                     50,552                                 -                           50,552
                                                                                        323,110                    173,017                           160,251                          656,378
Intermediate-term projects:
219 East 42nd Street/New York City                                 Dev                        -                    349,947                                 -                          349,947
10975 and 10995 Torreyana Road/Torrey Pines                        Dev                        -                     84,829                                 -                           84,829
                                                                                              -                    434,776                                 -                          434,776
Future projects:
311 Arsenal Street/Cambridge/Inner Suburbs                        Redev                       -                          -                           308,446                          308,446
550 Arsenal Street/Cambridge/Inner Suburbs                         Dev                        -                          -                           260,867                          260,867
446 and 458 Arsenal Street/Cambridge/Inner Suburbs                 Dev                        -                          -                            38,200                           38,200
380 and 420 E Street/Seaport Innovation District                   Dev                        -                          -                           195,506                          195,506
Other/Greater Boston                                              Redev                       -                          -                           167,549                          167,549
1122 and 1150 El Camino Real/South San Francisco                   Dev                        -                          -                           655,172                          655,172
3875 Fabian Way/Greater Stanford                                   Dev                        -                          -                           228,000                          228,000
960 Industrial Road/Greater Stanford                               Dev                        -                          -                           110,000                          110,000
Campus Point by Alexandria/University Town Center                  Dev                        -                    495,192                                 -                          495,192
Sequence District by Alexandria/Sorrento Mesa                   Dev/Redev                     -                          -                           688,034                          688,034
4025 and 4045 Sorrento Valley Boulevard/Sorrento Valley            Dev                        -                          -                            22,886                           22,886
601 Dexter Avenue North/Lake Union                                 Dev                   18,680                          -                                 -                           18,680
830 4th Avenue South/SoDo                                          Dev                        -                          -                            42,380                           42,380
Other/Seattle                                                      Dev                        -                          -                           102,437                          102,437
1020 Red River Street/Austin                                      Redev                       -                    126,034                                 -                          126,034
                                                                                         18,680                    621,226                         2,819,477                        3,459,383
                                                                                        341,790                  1,229,019                         2,979,728                        4,550,537

(1)Includes vacant square footage as of December 31, 2022.

Joint venture financial information

We present components of balance sheet and operating results information related
to our real estate joint ventures, which are not presented, or intended to be
presented, in accordance with GAAP. We present the proportionate share of
certain financial line items as follows: (i) for each real estate joint venture
that we consolidate in our financial statements, which are controlled by us
through contractual rights or majority voting rights, but of which we own less
than 100%, we apply the noncontrolling interest economic ownership percentage to
each financial item to arrive at the amount of such cumulative noncontrolling
interest share of each component presented; and (ii) for each real estate joint
venture that we do not control and do not consolidate, and are instead
controlled jointly or by our joint venture partners through contractual rights
or majority voting rights, we apply our economic ownership percentage to each
financial item to arrive at our proportionate share of each component presented.

The components of balance sheet and operating results information related to our
real estate joint ventures do not represent our legal claim to those items. For
each entity that we do not wholly own, the joint venture agreement generally
determines what equity holders can receive upon capital events, such as sales or
refinancing, or in the event of a liquidation. Equity holders are normally
entitled to their respective legal ownership of any residual cash from a joint
venture only after all liabilities, priority distributions, and claims have been
repaid or satisfied.

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We believe that this information can help investors estimate the balance sheet
and operating results information related to our partially owned entities.
Presenting this information provides a perspective not immediately available
from consolidated financial statements and one that can supplement an
understanding of the joint venture assets, liabilities, revenues, and expenses
included in our consolidated results.

The components of balance sheet and operating results information related to our
real estate joint ventures are limited as an analytical tool as the overall
economic ownership interest does not represent our legal claim to each of our
joint ventures' assets, liabilities, or results of operations. In addition,
joint venture financial information may include financial information related to
the unconsolidated real estate joint ventures that we do not control. We believe
that in order to facilitate for investors a clear understanding of our operating
results and our total assets and liabilities, joint venture financial
information should be examined in conjunction with our consolidated statements
of operations and balance sheets. Joint venture financial information should not
be considered an alternative to our consolidated financial statements, which are
presented and prepared in accordance with GAAP.

Mega campus

Mega campuses are cluster campuses that consist of approximately 1 million RSF
or more, including operating, active development/redevelopment, and land RSF
less operating RSF expected to be demolished. The following table reconciles our
operating RSF as of December 31, 2022:

                                                                      Operating RSF
Mega campus                                                            28,554,356
Non-mega campus                                                        13,219,366
Total                                                                  41,773,722

Mega campus RSF as a percentage of total operating property RSF             

68 %

Net cash provided by operating activities after dividends

Net cash provided by operating activities after dividends includes the deduction
for distributions to noncontrolling interests. For purposes of this calculation,
changes in operating assets and liabilities are excluded as they represent
timing differences.

Net debt and preferred stock to Adjusted EBITDA

Net debt and preferred stock to Adjusted EBITDA is a non-GAAP financial measure
that we believe is useful to investors as a supplemental measure of evaluating
our balance sheet leverage. Net debt and preferred stock is equal to the sum of
total consolidated debt less cash, cash equivalents, and restricted cash, plus
preferred stock outstanding as of the end of the period. Refer to the definition
of "Adjusted EBITDA and Adjusted EBITDA margin" within this Item 7 in this
annual report on Form 10-K for further information on the calculation of
Adjusted EBITDA.

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The following table reconciles debt to net debt and preferred stock and computes
the ratio to Adjusted EBITDA as of December 31, 2022 and 2021 (dollars in
thousands):
                                                                   December 31,
                                                              2022              2021
Secured notes payable                                    $    59,045       $   205,198
Unsecured senior notes payable                            10,100,717        

8,316,678

Unsecured senior line of credit and commercial paper               -        

269,990

Unamortized deferred financing costs                          74,918            65,476
Cash and cash equivalents                                   (825,193)         (361,348)
Restricted cash                                              (32,782)          (53,879)
Preferred stock                                                    -                 -
Net debt and preferred stock                             $ 9,376,705       $ 8,442,115

Adjusted EBITDA:
- quarter annualized                                     $ 1,846,936       $ 1,631,244
- trailing 12 months                                     $ 1,797,536       $ 1,517,838

Net debt and preferred stock to Adjusted EBITDA:
- quarter annualized                                             5.1  x            5.2  x
- trailing 12 months                                             5.2  x            5.6  x

Net operating income, net operating income (cash basis), and operating margin

The following table reconciles net income (loss) to net operating income and net
operating income (cash basis) and computes operating margin for the years ended
December 31, 2022, 2021, and 2020 (dollars in thousands):

                                                                       Year Ended December 31,
                                                            2022                 2021                 2020
Net income                                             $   670,701          $   654,282          $   827,171

Equity in earnings of unconsolidated real estate
joint ventures                                                (645)             (12,255)              (8,148)
General and administrative expenses                        177,278              151,461              133,341
Interest expense                                            94,203              142,165              171,609
Depreciation and amortization                            1,002,146              821,061              698,104
Impairment of real estate                                   64,969               52,675               48,078
Loss on early extinguishment of debt                         3,317               67,253               60,668
Gain on sales of real estate                              (537,918)            (126,570)            (154,089)
Investment loss (income)                                   331,758             (259,477)            (421,321)
Net operating income                                     1,805,809            1,490,595            1,355,413
Straight-line rent revenue                                (118,003)            (115,145)             (96,676)
Amortization of acquired below-market leases               (74,346)             (54,780)             (57,244)
Net operating income (cash basis)                      $ 1,613,460          

$ 1,320,670 $ 1,201,493

Net operating income (from above)                      $ 1,805,809          $ 1,490,595          $ 1,355,413
Total revenues                                         $ 2,588,962          $ 2,114,150          $ 1,885,637
Operating margin                                                  70%                  71%                  72%




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Net operating income is a non-GAAP financial measure calculated as net income,
the most directly comparable financial measure calculated and presented in
accordance with GAAP, excluding equity in the earnings of our unconsolidated
real estate joint ventures, general and administrative expenses, interest
expense, depreciation and amortization, impairments of real estate, gains or
losses on early extinguishment of debt, gains or losses on sales of real estate,
and investment income or loss. We believe net operating income provides useful
information to investors regarding our financial condition and results of
operations because it primarily reflects those income and expense items that are
incurred at the property level. Therefore, we believe net operating income is a
useful measure for investors to evaluate the operating performance of our
consolidated real estate assets. Net operating income on a cash basis is net
operating income adjusted to exclude the effect of straight-line rent and
amortization of acquired above- and below-market lease revenue adjustments
required by GAAP. We believe that net operating income on a cash basis is
helpful to investors as an additional measure of operating performance because
it eliminates straight-line rent revenue and the amortization of acquired above-
and below-market leases.

Furthermore, we believe net operating income is useful to investors as a
performance measure of our consolidated properties because, when compared across
periods, net operating income reflects trends in occupancy rates, rental rates,
and operating costs, which provide a perspective not immediately apparent from
net income or loss. Net operating income can be used to measure the initial
stabilized yields of our properties by calculating net operating income
generated by a property divided by our investment in the property. Net operating
income excludes certain components from net income in order to provide results
that are more closely related to the results of operations of our properties.
For example, interest expense is not necessarily linked to the operating
performance of a real estate asset and is often incurred at the corporate level
rather than at the property level. In addition, depreciation and amortization,
because of historical cost accounting and useful life estimates, may distort
comparability of operating performance at the property level. Impairments of
real estate have been excluded in deriving net operating income because we do
not consider impairments of real estate to be property-level operating expenses.
Impairments of real estate relate to changes in the values of our assets and do
not reflect the current operating performance with respect to related revenues
or expenses. Our impairments of real estate represent the write-down in the
value of the assets to the estimated fair value less cost to sell. These
impairments result from investing decisions or a deterioration in market
conditions. We also exclude realized and unrealized investment gain or loss,
which results from investment decisions that occur at the corporate level
related to non-real estate investments in publicly traded companies and certain
privately held entities. Therefore, we do not consider these activities to be an
indication of operating performance of our real estate assets at the property
level. Our calculation of net operating income also excludes charges incurred
from changes in certain financing decisions, such as losses on early
extinguishment of debt, as these charges often relate to corporate strategy.
Property operating expenses included in determining net operating income
primarily consist of costs that are related to our operating properties, such as
utilities, repairs, and maintenance; rental expense related to ground leases;
contracted services, such as janitorial, engineering, and landscaping; property
taxes and insurance; and property-level salaries. General and administrative
expenses consist primarily of accounting and corporate compensation, corporate
insurance, professional fees, office rent, and office supplies that are incurred
as part of corporate office management. We calculate operating margin as net
operating income divided by total revenues.

We believe that in order to facilitate for investors a clear understanding of
our operating results, net operating income should be examined in conjunction
with net income or loss as presented in our consolidated statements of
operations. Net operating income should not be considered as an alternative to
net income or loss as an indication of our performance, nor as an alternative to
cash flows as a measure of our liquidity or our ability to make
distributions.

Operating statistics

We present certain operating statistics related to our properties, including
number of properties, RSF, occupancy percentage, leasing activity, and
contractual lease expirations as of the end of the period. We believe these
measures are useful to investors because they facilitate an understanding of
certain trends for our properties. We compute the number of properties, RSF,
occupancy percentage, leasing activity, and contractual lease expirations at
100% for all properties in which we have an investment, including properties
owned by our consolidated and unconsolidated real estate joint ventures. For
operating metrics based on annual rental revenue, refer to the definition of
"Annual rental revenue" in this "Non-GAAP measures and definitions" section.

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Same property comparisons

As a result of changes within our total property portfolio during the
comparative periods presented, including changes from assets acquired or sold,
properties placed into development or redevelopment, and development or
redevelopment properties recently placed into service, the consolidated total
income from rentals, as well as rental operating expenses in our operating
results, can show significant changes from period to period. In order to
supplement an evaluation of our results of operations over a given quarterly or
annual period, we analyze the operating performance for all consolidated
properties that were fully operating for the entirety of the comparative periods
presented, referred to as same properties. We separately present quarterly and
year-to-date same property results to align with the interim financial
information required by the SEC in our management's discussion and analysis of
our financial condition and results of operations. These same properties are
analyzed separately from properties acquired subsequent to the first day in the
earliest comparable quarterly or year-to-date period presented, properties that
underwent development or redevelopment at any time during the comparative
periods, unconsolidated real estate joint ventures, properties classified as
held for sale, and corporate entities (legal entities performing general and
administrative functions), which are excluded from same property results.
Additionally, termination fees, if any, are excluded from the results of same
properties. Refer to "Same properties" section within this Item 7 in this annual
report on Form 10-K for additional information.

Stabilized occupancy date

The stabilized occupancy date represents the estimated date on which the project
is expected to reach occupancy of 95% or greater.

Tenant recoveries

Tenant recoveries represent revenues comprising reimbursement of real estate
taxes, insurance, utilities, repairs and maintenance, common area expenses, and
other operating expenses and earned in the period during which the applicable
expenses are incurred and the tenant's obligation to reimburse us arises.

We classify rental revenues and tenant recoveries generated through the leasing
of real estate assets within revenues in income from rentals in our consolidated
statements of operations. We provide investors with a separate presentation of
rental revenues and tenant recoveries in "Comparison of results for the year
ended December 31, 2022 to the year ended December 31, 2021" in the "Results of
operations" section within this Item 7 because we believe it promotes investors'
understanding of our operating results. We believe that the presentation of
tenant recoveries is useful to investors as a supplemental measure of our
ability to recover operating expenses under our triple net leases, including
recoveries of utilities, repairs and maintenance, insurance, property taxes,
common area expenses, and other operating expenses, and of our ability to
mitigate the effect to net income for any significant variability to components
of our operating expenses.

The following table reconciles income from rentals to tenant recoveries for the
years ended December 31, 2022, 2021, and 2020 (in thousands):

                                                    Year Ended December 31,
                                            2022             2021             2020
             Income from rentals        $ 2,576,040      $ 2,108,249      $ 1,878,208
             Rental revenues             (1,950,098)      (1,618,592)     

(1,471,840)

             Tenant recoveries          $   625,942      $   489,657      $   406,368


Total equity capitalization

Total equity capitalization is equal to the outstanding shares of common stock
multiplied by the closing price on the last trading day at the end of each
period presented.

Total market capitalization

Total market capitalization is equal to the sum of total equity capitalization
and total debt.

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Unencumbered net operating income as a percentage of total net operating income

Unencumbered net operating income as a percentage of total net operating income
is a non-GAAP financial measure that we believe is useful to investors as a
performance measure of the results of operations of our unencumbered real estate
assets as it reflects those income and expense items that are incurred at the
unencumbered property level. Unencumbered net operating income is derived from
assets classified in continuing operations, which are not subject to any
mortgage, deed of trust, lien, or other security interest, as of the period for
which income is presented.

The following table summarizes unencumbered net operating income as a percentage
of total net operating income for the years ended December 31, 2022, 2021, and
2020 (dollars in thousands):

                                                               Year Ended 

December 31,

                                                  2022                  2021                  2020
Unencumbered net operating income            $  1,790,033          $  1,444,307          $  1,295,520
Encumbered net operating income                    15,776                46,288                59,893
Total net operating income                   $  1,805,809          $  1,490,595          $  1,355,413
Unencumbered net operating income as a
percentage of total net operating income                 99%                   97%                   96%

Weighted-average shares of common stock outstanding – diluted

From time to time, we enter into capital market transactions, including forward
equity sales agreements ("Forward Agreements"), to fund acquisitions, to fund
construction of our highly leased development and redevelopment projects, and
for general working capital purposes. We are required to consider the potential
dilutive effect of our Forward Agreements under the treasury stock method while
the Forward Agreements are outstanding. As of December 31, 2022, we had Forward
Agreements outstanding to sell an aggregate of 0.7 million shares of common
stock. Refer to Note 15 - "Stockholders' equity" to our consolidated financial
statements under Item 15 in this annual report on Form 10-K for additional
information.

The weighted-average shares of common stock outstanding used in calculating EPS
- diluted, funds from operations per share - diluted, and funds from operations
per share - diluted, as adjusted, for the years ended December 31, 2022, 2021,
and 2020 are calculated as follows. Also shown are the weighted-average unvested
shares associated with restricted stock awards used in calculating the amounts
allocable to unvested stock award holders for each of the respective periods
presented below (in thousands):

                                                                        

Year Ended December 31,

                                                   2022                            2021                          2020
Basic shares for earnings per share                  161,659                         146,921                       126,106
Forward Agreements                                         -                             539                           384
Diluted shares for earnings per share                161,659                         147,460                       126,490

Basic shares for funds from operations
per share and funds from operations per
share, as adjusted                                   161,659                         146,921                       126,106
Forward Agreements                                         -                             539                           384
Diluted shares for funds from operations
per share and funds from operations per
share, as adjusted                                   161,659                         147,460                       126,490

Unvested restricted shares used in the
allocation of net income, funds from
operations, and funds from operations, as
adjusted                                               1,723                           1,782                         1,728


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